case study the chadwick fresard family chile · mr. luis chadwick, head of the chadwick fresard...
TRANSCRIPT
Caso de Estudio Familia Chadwick Fresard
2
I. Executive Summary
Mr. Luis Chadwick, head of the Chadwick Fresard family, has developed through the years a
professional career that made him an entrepreneur with an important patrimony. His career of over 30 years, began as a Navy Officer in the area of telecommunications, advanced to the
position of general manager at an electronic component company, and then made a significant leap into the business of importing food, the acquisition and creation of companies
in the area of electronic appliance (imports and exports), the installation of home appliances stores, the area of construction and the agricultural industry.
The family counts with a diverse group of businesses in several areas of the industry; in the agricultural, wine, electronic and illumination appliances, and the tourism industry. Of all the
family’s companies, the one that currently is the most important of all is Agrícola San Clemente, in the agricultural industry. Among their companies at a smaller scale, the most
important ones would be ByP and its Chinese filial, in the electronic and illumination
appliances industry, Brotherhood Winery in New York in the wine industry, and finally, Jéchica Island, a new enterprise in the tourism industry. It is important to notice that a great part of
the family’s patrimony is currently invested in the national and international stock markets and real state, through the Quelentaro Services Investment Holding.
Luis son was involved during different stages of his life in the administration of some of the
companies in his property. Currently, his daughter Carmen and his son Francisco participate in
some of the boards. His son-in-law, Andrew Wallace, performed as CEO of Agrícola San Clemente, and today participates in the Corporative Board of this agricultural company and is
Executive President of San Clemente Comercializadora. He also owns an investment society, and has formed an Import office with offices in England, where Luis Chadwick is partner.
The family’s companies have evolved, being Agrícola San Clemente the most important of all today; its development began in 1984, with 10 years of a very low production and a lot of
investment, and then began to slowly show results from 1993 with the incorporation of Andrew Wallace in General Management. Later, in 2000, a strong development began, with
the initiation of a professionalization process encouraged by Andrew and then by an external
consultancy that organized and restructured the company. The Agrícola, which began in the fields, currently has expanded with the Cold Storage Packing Plant, the Export Company, and
finally, with the Juice Plant. Today, ASC generates sales of US$ 66 million a year, and its core business is the production, commercialization and exportation of fruits, mainly apples. ASC
was associated with Andrew Wallace’s Imports office in London.
The electronic products company ByP, Luis Chadwick’s first big scale company, diversified its
activities from the manufacturing of electronic appliances to the construction industry, and after some failures during its internalization in Latin America, was expanded by opening an
energy saving lighting factory in Suzhou, China, with approximately 300 employees and turning into the group’s second most important company, with sales reaching over US$ 23
million a year.
In regard to the family’s entrepreneurial capacity, it’s necessary to differentiate between
father and sons. The father shows an outstanding entrepreneurial capacity, is filled with ideas and his motivation to start new activities goes beyond an interest in money, and is also
extremely hard working and tireless. His sons have inherited his father’s entrepreneurial side, who as encouraged this capacity in an intuitive and informal way, which ended up with his
Caso de Estudio Familia Chadwick Fresard
3
sons developing individual projects instead of as a family. This is way they don’t count, currently, with a common project in which to leap as a group.
The entrepreneurial capacity of this family is centred in the father’s management, and its behaviour in business can be observed in its process of diversification, which as allowed to
embark successfully in various industries. There is the vertical integration in agricultural, with the exportation of fruit products. There is also the internationalization of ByP with the joint
venture of Savia in China with Spanish and Chinese partners. You can also observe the growth, expansion and internationalization in agricultural, with the expansion of fields, which
increased production and the amounts of exportation, and the acquisition of fields outside
Chile for the production of edible grapes. There is also the constant innovation in new business models that allow competing in the wine industry in the North American market and
in the agricultural technology industry.
Regarding the family’s resources and capacities, we can observe that in general these work
in favour of the family, but that its rigidity can turn into a disadvantage. Leadership is still in hands of the family’s founder, as well as the power of decision taking regarding capital and
knowledge. This has been an advantage in the sense that it has been successful. Yet, this can turn into a disadvantage when it doesn’t allow the companies to fully take advantage of
this same capacities or abilities in the other members of the family, and leaves the successors without the possibility to contribute to the group through learning, the acquisition
of information or professionalization, and keeps the work from being more efficient and
successful by integrating different visions and styles of work.
This family counts with a transgenerational potential in the sense that there is a succession of leadership in the son-in-law, Andrew Wallace, which is unanimously approved by the
second generation, and there also is the genuine intention of perpetuating the father’s legacy
in benefit of the current and future generations. The necessary structures are being generated in order to allow space for business and family development through professional
government organs that will give the necessary space to learn how to be a business family. Every member of the family counts with the father’s entrepreneurial seal in different
amounts, which contributes to the vision of generating new enterprises.
The family is now in the initial state, becoming aware that they can be a Business Family,
and understanding what this means and also implies. They are beginning with the proper practices of a Business Family, and because of this they are still not fully aligned. They need
time, conversation and exercise to establish them as such.
Caso de Estudio Familia Chadwick Fresard
4
II. Introduction and General Information
Mr. Luis Chadwick, head of the Chadwick Fresard family, has developed through the years a
professional career that made him an entrepreneur with an important patrimony. His career of over 30 years, began as a Navy Officer in the area of telecommunications, advanced to the
position of general manager at an electronic component company, and then made a significant leap into the business of importing food, the acquisition and creation of companies
in the area of electronic appliances (imports and exports), the installation of home appliances stores, the area of construction and the agricultural industry.
a. Profile of the Firm
Business Portfolio of the Chadwick Fresard Family
The family counts with a diverse group of businesses in several areas of the industry; in the
agricultural, wine, electronic and illumination appliances, and the tourism industry. Of all the
family’s companies, the one that currently is the most important of all is Agrícola San Clemente, in the agricultural industry. Among their companies at a smaller scale, the most
important ones would be ByP and its Chinese filial, in the electronic and illumination appliances industry, Brotherhood Winery in New York in the wine industry, and finally, Jéchica
Island, a new enterprise in the tourism industry. It is important to notice that a great part of the family’s patrimony is currently invested in the national and international stock markets and
real state, through the Quelentaro Services Investment Holding.
NAME MANUFACTURAS ELÉCTRICAS BYP LTDA.
ACTIVITY Import, distribution and sales of lighting and electric equipments and
materials. EQUITY (DOLARS) US$ 7 mills. FAMILY PARTICIPATION 44% SIZE Hires 50 workers in the plant. SALES US$ 15 mills. per year. INDUSTRY Electronic. Westinghouse Distribution. PRINCIPAL MARKETS Latin America: Argentina, Brazil, Peru and Paraguay. PRINCIPAL PRODUCTS Luminary products: ballast, Light bulbs, spotlight, among others. DATE Acquired in 1979.
NAME SAVIA. ACTIVITY Energy saving lamps manufacturing. EQUITY (DOLARS) US$ 8 mills. FAMILY PARTICIPATION 25% SIZE 300 workers. SALES US$ 7.2 mills per year. INDUSTRY Electronic. PRINCIPAL MARKETS Europe and Latin America. PRINCIPAL PRODUCTS Energy saving lamps. DATE Suzhou, China en 2003. Joint Venture with China and Spain.
Caso de Estudio Familia Chadwick Fresard
5
NAME AGRÍCOLA SAN CLEMENTE
ACTIVITY
Production, packing, processing, exporting, marketing of agricultural products. Has invested in: Agricultural Fields. Cold Storage and Packing Plant (Fruit Processing and Packing plant). Export Company. Juice Plant.
EQUITY (DOLARS) US$ 40 mills. FAMILY PARTICIPATION 85% of Luis Chadwick. 15% of Andrew Wallace, Luis’ son in law.
SIZE It owns a 1.000 has in different farms committed primarily to apple production, hiring 120 workers in the plant and 1.200 temporary workers.
SALES US$ 66 mills per year. INDUSTRY Agriculture. PRINCIPAL MARKETS Europe (Holland, Spain, Portugal, England), Asia.
PRINCIPAL PRODUCTS
Fresh fruit: apples, grapes, avocados, clementines, cherries, pears and kiwifruits.
Juice Extract.
DATE
Fields in ASC acquired in 1984. Cold Storage and Packing Plant in 1989. Export Company in summer of 1991-1992. Juice Plant in summer of 1997-1998.
NAME SOCIEDAD DE DESARROLLO JÉCHICA LTDA. ACTIVITY Cabins in the woods, a marina shelter for vessels and a refuge club house. EQUITY (DOLARS) US$4 mills FAMILY PARTICIPATION 85%. 5% of Francisco Chadwick, the son. SIZE Employs 4 workers during the year, and 10 in summer time. SALES - INDUSTRY Tourism PRINCIPAL MARKETS National sailors and international tourists. PRINCIPAL PRODUCTS Accommodations, Excursions, Shelter for vessels. DATE Established in October 17 2000 in Aysén.
NAME BROTHERHOOD WINERY ACTIVITY Wine production and marketing. EQUITY (DOLARS) US$ 15 mills. FAMILY PARTICIPATION 45%, among the father and his two sons. SIZE 35 workers in the winery and 10 temporary workers. SALES US$ 4 mills. per year. INDUSTRY Winery. PRINCIPAL MARKETS North America.
PRINCIPAL PRODUCTS
Bottling and stacks of wine. Silver medal in 2007 for Riesling, in 2004 for Cabernet Sauvignon, in 2005 for Pinot Noir Holiday Spiced Wine and Blanc, and bronce medal for May Wine, Ruby Port and Cream Sherry. (July 4 2008).
DATE Acquired in 2005. America’s oldest winery established in 1839, in Washingotnville, NY.
Caso de Estudio Familia Chadwick Fresard
6
NAME QUELANTARO INVESTMENT HOLDING ACTIVITY Investment Holding EQUITY (DOLARS) US$ 128 mills. FAMILY PARTICIPATION 100% SIZE 2 employees. SALES Financial and properties and real state investment. INDUSTRY Investment and Real State. PRINCIPAL MARKETS - PRINCIPAL PRODUCTS National Listed Companies shareholdings and International shareholdings. DATE Fundada el 4 de octubre de 1995.
THE CHADWICK FRESARD’SBUSINESS PORTFOLIO
THE CHADWICK FRESARD’SBUSINESS PORTFOLIO
JÉCHICAISLAND
(TOURISM AND NAUTIC)
2000
JÉCHICAISLAND
(TOURISM AND NAUTIC)
2000
BROTHERHOOD
(WINERY)2004
BROTHERHOOD
(WINERY)2004
BYP
(ELECTRIC
MANUFACTURE)
1979
BYP
(ELECTRIC
MANUFACTURE)
1979
AGRÍCOLA SAN CLEMENTE
(AGRICULTURE)1984
AGRÍCOLA SAN CLEMENTE
(AGRICULTURE)1984
JUICE PLANTCOLD STORAGE PACKING PLANT
JUICE PLANTCOLD STORAGE PACKING PLANT
EXPORT COMPANYEXPORT COMPANY
FIELDSFIELDS
ANGOL FRUITANGOL FRUIT
LIMARÍ COLD STORAGELIMARÍ COLD STORAGE
ROMA AGRICULTUREROMA AGRICULTURE
CARMEN BRANADEROCARMEN BRANADERO
LOS TRAILLERSLOS TRAILLERS
UK OFFICEUK OFFICE
SHANGHAI DISTRIBUTION CENTER
SHANGHAI DISTRIBUTION CENTER
SAVIA(2003)
SAVIA(2003)
SERVICIOS QUELANTARO
(INVESTMENT HOLDING)
1995
SERVICIOS QUELANTARO
(INVESTMENT HOLDING)
1995
NATIONAL LISTED COMPANIES
SHAREHOLDINGS
NATIONAL LISTED COMPANIES
SHAREHOLDINGS
INTERNATIONAL SHAREHOLDINGS
INTERNATIONAL SHAREHOLDINGS
PROPERTIES AND REAL-ESTATE
PROPERTIES AND REAL-ESTATE
CRANBERRIES AUSTRAL CAC
CRANBERRIES AUSTRAL CAC
b. Profile of the Family
Mr. Luis Chadwick Vergara and his wife, Carmen Fresard Trucco, constitute the
Chadwick Fresard family’s first generation, being Luis the founder and creator of the family’s patrimony and almost the totality of the family’s current companies.
They have 4 children, who constitute this business family’s second generation. The three older are married, and the youngest daughter is divorced. They all have
children, being the third generation constituted by 14 grandchildren.
Caso de Estudio Familia Chadwick Fresard
7
Some of Luis’s children have participated in the management of some of his companies. Currently, his daughter Carmen and his son Francisco participate in
some of the boards. His son-in-law, Andrew Wallace, performed as CEO of Agrícola
San Clemente, and today participates in the Corporative Board of this agricultural company and is Executive President of San Clemente Export Company.
The Family Tree of the Chadwick Fresard Family
1966
1990 1995 1998 1995 - 2001
1941
Luis
Chadw ick
(Vergara)
67
1945
Carmen
Fresard
(Trucco)
63
1967
Maureen
Chadw ick
(Fresard)
41
1968
Luis
Chadw ick
(Fresard)
40
1968
Francisco
Chadw ick
(Fresard)
40
1971
Carmen
Chadw ick
(Fresard)
37
1964
Andrew
Wallace
44
1995
Thomas
13
1997
Lucas
11
2000
Martín
8
2002
Max
6
2008
Olivia
0
1972
Francisca
Lehuedé
36
1996
Isidora
12
1998
Luis
10
2002
Nicolás
6
2003
Manuel
5
1970
Cristina
Ramírez
38
1999
Elisa
9
2002
Victoria
6
2004
Cristina
4
1967
Andrés
Jankovic
41
1998
Amanda
10
2000
Valentina
8
The Chadwick Fresard Family and Other People Involved, and their
participation in the family’s businesses:
GEN. NAME AGE RELATION POSITION IN COMPANIES
I Luis Chadwick Vergara 67 Father Owner, founder and partner of the business portfolio. Chair in ASC, Brotherhood, Jéchica and ByP.
I Carmen Fresard Trucco 63 Mother Has no participation in the group’s companies.
II Maureen Chadwick Fresard 41 Daughter Has no participation in the group’s companies.
II Andrew Wallace 44 Son-in-law Member of the Board in ASC. CEO of ASC, until 2007.
II Luis Chadwick Fresard 40 Son Has no participation in the group’s companies. He was involved in some of the businesses in some periods.
II Francisco Chadwick Fresard 40 Son Member of the Board in ASC, Jéchica and Executive Director in Brotherhood. Participates in some way in Quelantaro Investment Holding.
II Carmen Chadwick Fresard 37 Daughter Has no participation in the group’s companies. He participates as member of the board in Jéchica Island.
Caso de Estudio Familia Chadwick Fresard
8
c. Profile of the Ownership
Mr. Luis Chadwick’s stock property in the year 2008 is divided into some business
enterprises, such as Agrícola San Clemente, Brotherhood, ByP, Jéchica and Savia,
and into other financial investments through Quelentaro Investment Holding. In some businesses he is a controller by himself or along his sons, and in others he
isn’t.
JÉCHICA
85%
BROTHERHOOD
45%
BYP
44%
AGRÍCOLA SAN
CLEMENTE
85%
SAVIA25%
QUELANTAROINVESTMENT
100%
15%15%
56%56%75%
CHADWICK FRESARD’ BUSINESS PORTFOLIO OWNERSHIP
CHADWICK FRESARD’ BUSINESS PORTFOLIO OWNERSHIP
The participation of the other family members is described in detail in the following
graph.
JECHICA BROTHERHOODASC
CHADWICK FRESARDEQUITY SHARE
CHADWICK FRESARDEQUITY SHARE
LUIS CHADWICK V.(80%)
FRANCISCO CHADWICK F.
(5%)
LUIS CHADWICK V. (85%)
ANDREW WALLACE(15%)
LUIS CHADWICK V.(27%)
FRANCISCO CHADWICK F.
(9%)
LUIS CHADWICK F. (9%)
BYP
LUIS CHADWICK V.(44%)
SAVIASAVIA
LUIS CHADWICK V.(25%)
The following is a detailed description of the property structure of every business.
Quelentaro Services
Quelentaro Services corresponds to an investment society that counts with real
state properties, apartments, houses, warehouses and parking lots, and lots for urbanization in Santiago and other regions of Chile. It also holds stocks in
companies opened to the stock market in Chile, where Quelentaro has more
Caso de Estudio Familia Chadwick Fresard
9
capital, and in stock markets outside the country. This society constitutes 65% of the family’s financial patrimony.
Agrícola San Clemente (ASC)
OWNERS % OWNERSHIP FAMILY – EXTERNAL
LUIS CHADWICK VERGARA 85% FOUNDER ANDREW WALLACE 15% SON IN LAW
LUIS CHADWICK
VERGARA
85%
ANDREW WALLACE
15%
Sociedad de Desarrollo Jéchica Ltda. (Isla Jéchica)
OWNERS % OWNERSHIP FAMILY – EXTERNAL
LUIS CHADWICK VERGARA 80% FOUNDER FRANCISCO CHADWICK FRESARD 5% SON G. MUNIZAGA Y C. PASCAL 10% EXTERNAL G. MARTIN 5% EXTERNAL
LUIS CHADWICK
VERGARA
80%
GUSTAVO M ARTIN
5%
GERM ÁN M UNIZAGA
(CRISTÓBAL PASCAL)
10%
FRANCISCO
CHADWICK FRESARD
5%
Caso de Estudio Familia Chadwick Fresard
10
Viña Brotherhood The property is distributed among Cesar Baeza and Sovinex.
OWNER % OWNERSHIP FAMILY – EXTERNAL
CÉSAR BAEZA 10% EXTERNAL SOVINEX 90% EXTERNAL AND FAMILY
Sovinex is represented by:
OWNERS % OWNERSHIP FAMILY – EXTERNAL
AGROPACAL 45% EXTERNAL FAMILIA CHADWICK 45% FAMILY
The Chadwick’s Family is involved in the ownership as:
OWNERS % OWNERSHIP FAMILY – EXTERNAL
LUIS CHADWICK VERGARA 27% FOUNDER LUIS CHADWICK FRESARD 9% SON FRANCISCO CHADWICK FRESARD 9% SON
The property of the Winery is divided in the following way:
OWNERS % OWNERSHIP FAMILY – EXTERNAL
CÉSAR BAEZA 10% EXTERNAL AGROPACAL 45% EXTERNAL LUIS CHADWICK VERGARA 27% FOUNDER LUIS CHADWICK FRESARD 9% SON FRANCISCO CHADWICK FRESARD 9% SON
CÉSAR BAEZA
10%FRANCISCO
CHADWICK FRESARD
9%
LUIS CHADWICK
FRESARD
9%
LUIS CHADWICK
VERGARA
27%
AGROPACAL
45%
Manufacturas Eléctricas ByP Ltda. (BYP)
OWNERS % OWNERSHIP FAMILY – EXTERNAL
LUIS CHADWICK VERGARA 44% FOUNDER ANDRÉS Y JUAN LYON 42% EXTERNAL ALBERTO SILVA 8% EXTERNAL ANDRÉS ERRÁZURIZ 6% EXTERNAL
Caso de Estudio Familia Chadwick Fresard
11
LUIS CHADWICK
VERGARA
44%
ANDRÉS ERRÁZURIZ
6%
ALBERTO SILVA
8%
ANDRÉS Y JUAN LYON
42%
SAVIA Is a joint venture with Hong Kong and Spain, a subsidiary of ByP in China.
OWNERS % OWNERSHIP FAMILY – EXTERNAL
LUIS CHADWICK VERGARA 25% FOUNDER TRACY PAN, HONG KONG 50% EXTERNAL CARLOS LÓPEZ, SPAIN 25% EXTERNAL
LUIS CHADWICK
VERGARA
25%ESPAÑOLES
25%
HONG KONG
50%
Caso de Estudio Familia Chadwick Fresard
12
d. Profile of the Interviews
INTERVIEWEES PROFESSION RELATION POSITION DATE
INTERVIEW LENGTH
INTERVIEW INTERVIEWER
Maureen Chadwick Fresard.
Designer II Generation Not involved in family businesses
July 30, 2008
01:45 M. Pía Bartolomé
Carmen Fresard Trucco
I Generation Not involved in family businesses
August 1, 2008
02:00 M. Pía Bartolomé
Carmen Chadwick Fresard
Interior Designer
II Generation Member of the Board in Jéchica.
August 1, 2008
03:00 M. Pía Bartolomé
Luis Chadwick Fresard
Business Administrator
II Generation Not involved in family businesses
August 8, 2008
02:30 M. Pía Bartolomé
Francisco Chadwick Fresard
Business Administrator
II Generation
Member of the Board in ASC, Jéchica and Brotherhood.
August 5 y 13, 2008
1:30 y 01:00 M. Pía Bartolomé
Andrew Wallace Civil Engineer Son-in-law
Member of the Board in ASC, and owner of 15% of ASC.
August 20 y 25, 2008.
1:15 y 0:45 M. Pía Bartolomé
Caso de Estudio Familia Chadwick Fresard
13
III. Industry
The Electronic Industry
During the 70’s the Chilean government leaded by President Eduardo Frei M. stimulated the development of the electronic industry in the country through certain policies, reason why
several factories appeared during that time. Later on, with the arrival of the socialist
government of Allende, factories were intervened and many of them stopped producing; such was the case of COELSA in Arica. With the economic crisis during the military
government of Augusto Pinochet several factories went bankrupt, among them ByP, which was bought by Luis Chadwick and his partners in 1979. It produced electronic home
appliances and was then expanded to the construction industry. Due to the opening of
importations from North America and the arrival of excellent quality electronic appliances, ByP had to make some adjustments, in order to finally dedicate itself to the manufacturing
of illumination appliances. Being a successful company, it required more time and dedication than the rest of the businesses in the portfolio. Meanwhile Agrícola San Clemente turned
more and more professional and generated more income ByP, so it began to demand more
attention and dedication from ByP; probably, in addition to this, was the natural lack of motivation generated by a project from ByP in South America that ended up failing. The
critical business factors point towards having excellent relationships and trust with Asian suppliers who bring the products, as well as with the national distributors in big stores;
profound knowledge of the tendencies and fashion in decoration and illumination for all types of construction and installations, and the location of retail stores. The business model:
The Agricultural Industry The beginnings of ASC were hard; its first decade consisted mainly of expenses and
investments. Luis Chadwick was able to dedicate it his weekends and needed someone to take charge over the administration. In 1992 his son-in-law, Andrew Wallace, took complete
charge over ASC. Thanks to this incorporation, new markets were opened, which allowed the
commercialization of the fruit and boosted its vertical integration for exportation. By year 2000, ASC grew with the incorporation of a staff that helped with Andrew’s tasks, and
pushed strongly towards professionalization, by forming structures, dividing functions and separating the business into business units. The 2002 – 2003 season was prosperous, and
the country was in a good business situation. Investments started to mature and produce, and volume increased in high rates, leaving an interesting margin. Plus, the price of the US
dollar was high, the fruit sold well and there was also a controlled costs structure. The years
2005 to 2007 were a more complicated period, though. Costs (labour, energy, fertilizers and oil) increased, the price of the dollar declined, and productivity became worse in quantity as
well as in quality. The critical success factors of this business are related to a good planning of the fruit production process during the whole chain of value; the acquisition of good
seeds, fertilizers and products that assure the quality and quantity of production in order to
be competitive. There are also being a step forward in comparison to world tendencies and the different markets in order to produce with time, search for consumer’s niches and
generating market participation. It is also necessary to acquire fields in other parts of the world that are adequate for production and that allow to decrease costs.
Export Company: The ASC began to export during the season of 1990 – 1992 through the David del Curto
Export Company. The next season, from 1991 – 1992, Luis Chadwick and his son, Luis began to export independently by opening businesses in Holland, Spain and Portugal, by
making some spot sales directly. During the next season, from 1992 – 1993, Andrew Wallace
Caso de Estudio Familia Chadwick Fresard
14
was incorporated to the company, and the exportation business became even more formal, by opening new markets and incorporating other producers in order to make the exportation
volume more attractive. His business model consisted of taking the fruit from the fields
directly to the client. With Andrew’s departure to England (in 2007), an Import Company was formed, by applying this business model, and ASC became associated with him in order to
count with an office in London to open new markets in England.
The Juice Plant: In 1998 the Juice Plant was funded, with the idea of taking advantage of the fruit that was
no being exported. A great investment was made, one that didn’t seem to be justified during
its beginnings since it didn’t generate attractive returns, due to the 7 year crisis of the apple juice, caused by the Chinese production that was imported into the country. Since the
investment was had already been made it was decided to continue, and since 2005 the business to a turn by incorporating other products such as cranberries (an idea developed by
Francisco Chadwick), and by expanding the plant’s capacity, which has made the business to
grow in a very interesting way. In addition to this, the plant’s staff is especially efficient, and has been able to significantly exceed the productive goals, juices are a current trend and
prices have improved considerably.
The London Office: ASC has a stock participation in the Import Company belonging to Andrew Wallace in
London. It has 4 programs with supermarket chains in the city. Its business model consists
of replacing traditional importers that depend from ASC and providing final clients with services by offering a final delivery logistic to the supermarket. The businesses’ evolution has
been positive, and has continued to grow through the development of a very good commercial portfolio of clients and the opening of new markets, quadruplicating the product
volumes, having a minimum cost structure and thanks to the human team.
The Hotel Industry
Jéchica Island is part of the vision of the sailing and nature lover, and his generosity for sharing it with others with the same ideals. In business terms, Jéchica Island can be a
proposal a little too advanced and risky for the Chilean market, which is very reduced, since
it is an elite market. Yet, it has an enormous development potential in the international market with those who value tremendously this type of tourism, especially in the
geographical zone where it’s located. Currently, important decisions go through the founder, who doesn’t count with all the necessary time for this business to strengthen and grow. The
critical factors in this business are a good direct marketing strategy aimed at the international market, the alliance with other specialized elite tourism companies that aim
towards the boutique hotel business and that promote as part of the business plan. Other
relevant factors are excellence in service, care towards the natural environment, supplying, transportation and mobility.
The Wine Industry
The wine production in the USA is over 300 years old, and is carried out in all its stages, being California the leader in the wine production industry along with Washington, Oregon
and New York. The USA is the world’s fourth wine producer, and the fifth with the greatest amount of cultivated Vineyards. During the sixties, the University of California, Davis, and
some state Universities in New York promoted research, publications, consulting, courses and production of quality wines. During the seventies and eighties, the success of Californian
wine makers assured foreign investments from other wine producing regions, promoting its
Caso de Estudio Familia Chadwick Fresard
15
growth and consume, with 2,525 million litres of wine consumed in the USA during 2004. Currently, the USA represents 8% of the world’s wine production, and is facing the
increasing challenge of the expanding international exportations, and having to manage
national norms regarding interstate sales and wine delivery.
In 2004, Luis Chadwick acquired the Vineyard with his partner, Pablo Castro, transforming it into the nexus that would allow him to strengthen his national agricultural and wine
businesses. Luis saw in this purchase a great opportunity, in words of his partner, “It was a good opportunity because the Vineyard is a consolidated brand in the market, because it is prestigious for being the oldest in the USA, and because it was a good alternative to enter our wine into one of the most competitive countries in the world.”
Currently, the Vineyard is oriented to recovering the Premium market, where Brotherhood entered strongly during the seventies, for which it works hard on strengthen the brand’s
name, in order to continue exporting wine into the Asian market, and to boost it in 16 states
in the USA, between Massachusetts and Florida. In this sense, its main advantage is it geographical location, “where one third of the American population lives. There is a greater
acquisitive power, and therefore, the consuming of wine there is one of the highest in the USA”, explains Baeza, the Vineyard’s oenologist. In addition to this, they pretend to raise
their production that had it first harvest in 2007, from 10% to 50%.
This Vineyard is located in the Hudson Valley, home of artists and business men, one hour
from New York. It is recommended to tourists, for being the oldest vineyard and having the largest cellar in the USA. This cellar counts with a museum that keeps from old machinery
and tools to wine bottles from the XIX century, and is only one hour from New York. The company is investing strongly in remodelling the installations, the mansion, raising a
restaurant and a café, among other things. Competition is tough, since the number of
Vineyards in the area increased from 10 to 30 during the last 30 years, and these are growing fast.
Caso de Estudio Familia Chadwick Fresard
16
IV. Environment
There were several outside variables that had an impact in the family’s businesses through
the years, and that Luis knew how to take advantage from in benefit of his businesses. The
economic and political problems and crisis lived in the country during their respective periods meant, for Luis, more opportunities and advantages that allowed him to raise and grow,
instead of being problems that would sink him.
The Socialist Government of Allende (Arica)
The government of Eduardo Frei Montalva implemented policies that favoured enormously
the development of the electronic industry in the North of Chile. During that period, Luis Chadwick was working at COELSA (Componentes Electrónicos S.A., Mellafe and Salas), a
company where he learnt the business of manufacturing electronic appliances. With the arrival of the socialist government, Salvador Allende, in 1970, and while Luis was performing
as Manager, the company was nationalized. Due to this, Milán Platovski, the owner of
COELSA, a Jewish immigrant who had suffered the Holocaust in 1945 in concentration camps, was afraid to have to relive difficult times, and left the country, leaving Luis in charge
of taking care of the company, specially of taking care of the expensive machinery. Fortunately, the factory’s interventor was a smart person and didn’t misuse the company,
which for political reasons wasn’t able to function. After the military coup, and seeing that the Unidad Popular was coming to its end, Milán returns to Chile and installs along with Luis
an Import Company called “Comercial Prat”, and since he doesn’t want to continue with the
factory, which he was forced to abandon, he decided to sell the machines. Luis, who had the experience of working with them and who best knew them to advantage of the situation and
accepted the offer, and gradually bought all of them with the savings he was able to make during the year that the factory didn’t function. During this time, Luis, along with Hernán
Bianchi, who worked for COELSA in Iquique, took advantage of the free port opportunities in
Iquique and started a series of businesses that gave them important earnings. Also, due to the low value of Chilean currency, they travelled to Bolivia, a country on the Northern
frontier, to buy American dollars. These transactions allowed them to earn the great capital that Luis saved. He was able to make US$ 1,000, which allowed him to live comfortable for
10 months. He saved all the rest of his earnings. With this money, and the one he got from
working at Comercial Prat, he was able to purchase all the machinery at Milán’s factory.
Education and Upbringing (Santiago) An important concern for Luis and his wife, Carmen, was the upbringing and education of
their children. They remember Arica as the city of the eternal spring, where they were able to enjoy a rich family life. The time’s conditions allowed them to share family lunch time
everyday and a present father (due to the intervention on the factory during the UP) without
major economic problems in spite of the economic crisis. In fact, these were times of economic wellbeing for the family in several aspects. Mrs. Carmen describes it in the
following way: “We have never been richer than in those times, in every sense.” Yet, the social conditions weren’t the best to raise teenagers, due to the high levels of drug addiction
in the area, since it shares borders with Bolivia. This was the reason why Luis decided to
start shaping his children’s professional careers in a way that would allow them to go back to live in Santiago and offer his children the best education possible. Keeping this objective in
mind, he became partners with Mario Wisnia, who invited him to participate with capital and his know-how, and together they installed an electronic home appliances store in San
Antonio, the threshold for Regalhogar, the next store they would open in Santiago three years later.
Caso de Estudio Familia Chadwick Fresard
17
The Economic Crisis (Santiago)
During the economic crisis in the beginnings of the eighties, many national factories and
companies went bankrupt, new opportunities were generated for the bold or those who counted with the necessary capital.
The First Acquisition During the Crisis
Boné and Parraguez (Sindelen-IRT), a company that manufactured electronic appliances, was one of the companies that went bankrupt during this crisis. Luis, who had just
established himself and his family in Santiago, found out about this bankruptcy and decided
to participate in the auction in spite of not counting with the necessary capital. In this occasion, Luis sat at the auction next to Andrés Lyon, with whom he started a nice
conversation. Luis had the business idea in his head, and invited Andrés to participate with him in a society, and together they bought the brand ByP (Boné y Parraguez) at that
auction. Luis contributed with the machinery he bought from Milán and his know-how, and
Andrés the rest of the necessary capital. During the next three years after the purchase, and in order to avoid the economic crisis that became worse during 1982, Luis strongly controlled
costs, and reinvested earnings with his partners, which allowed them to grow without owing money to the banks.
The Boom of the Construction Industry and Its Decadence
During these times of financial crisis, Luis and his partners from ByP saw a good opportunity
for business in the construction industry. They bought a residential building that its construction company was not able to finish because it went bankrupt. The finished the
construction and sold it. With the intention of being cautious during times of crisis, they decided to build only one building a year and assure the company’s profitability. The
earnings during the first years of the construction company were conservative: one building
a year was the precaution measure in order to not take risks. With the help of an architect, they acquired buildings at auctions that were still unfinished, then they finished and sold
them, and reinvested the earnings in new lands where to build. By the year 1987, the construction industry was at its peak in the country, and was delivering excellent dividends
to the society.
The Asian Crisis
Briefly before the Asian Crisis that affected the country in 1997, the sales of apartments and houses in construction were not as fast as before. Due to the slow in sales, Luis had the
clarity of mind to identify on time the end of the “boom”. When the country was in mist of a crisis, Luis decided to shut down the construction company, since it was the precise
moment, after 10 years working.
The Agrícola, its Flourishment and Difficulties
In 1984 the country was still in a crisis, and because of this, a business man acquired a debt to Luis, and since he didn’t count with the financial means to pay him, he offered him a farm
in Central Chile as part of the payment. Instead of selling it to get the money, Luis decided
to get involved in the agricultural business and started to work in the country during weekends (in order to keep his functions at ByP) in the production of apples, and later grew
with the acquisition of another farm in the same area. By the year 1987, the farm only generated expenses. Yet, two years later (1989), it was expanding its line of businesses by
installing a “packing and cold-storage plant” with the purchase of some refrigerators from a burnt cold-storage plant. Two years later, he decided to be the only controller and purchased
a his partners participation, who had entered the business with the goal of obtaining profits
Caso de Estudio Familia Chadwick Fresard
18
from the payment, and in 1992, he entered to work at ASC with his son-in-law, Andrew Wallace, taking charge of the whole company. Even though there was a slow beginning, the
circumstances improved due to a process of professionalization. Today, the agricultural
business is the one with fewer profits due to external circumstances: labour, currency exchange, and the increase in the costs of energy and consumables. There is also the
mistake of not have been able to increase the capacity and quality of the production, which have improved through an outside consultancy oriented to improving their processes and
management.
Caso de Estudio Familia Chadwick Fresard
19
V. Family Involvement
The First Generation
The Chadwick Fresard family’s patrimony was built during the early seventies, when Luis Chadwick Vergara retired from the Navy and entered the secular world and the business
world. During the period when his children where at school, it was the funding patriarch Luis, who was involved in every aspect of his businesses from their birth, development and
consolidation, and in strategic and operative management matters, always in the company of partners who contributed strategically with what Luis lacked; whether it was capital or know-
how. When his children were in college, studying careers associated to business, his father
started to integrate his son Luis. Later, and with an important working experience, he son Francisco and daughter Carmen. With the incorporation of this offspring in some of his
businesses, his control wasn’t delegated among them, and it has never stopped being in hand of their father.
The Second Generation When the second generation became involved in the business, it became hard for Luis father
to abandon his style of high involvement and control that had accompanied him for all those years. Today, when his children are 40 years old, and have acquired experience in companies
outside the family and have their own enterprises, and could have a more active participation in the family’s businesses, only one of them has participates in them.
About two years before graduating from school, his sons started to get lightly involved in the businesses during summer vacations. Both Luis son and his brother, Francisco, worked
during summers at ByP’s warehouses, supervising the dispatch of products and the product stock, among other things.
Luis Chadwick Fresard Meanwhile Luis son, (Luis Chadwick Fresard) was getting prepared for his university’s
admissions tests, which he had to give in 1987, he agreed with his father that he would support him with the ByP Construction Company, by working during the mornings at the
acquisitions and purchases area. Later on, during his fourth year at Business Administration
School, his father asked him again for his help, this time to take charge over the supervision and control of the fresh fruit that arrived from the fields to the Cold
Storage&Packing Plant, after this, to supervise the disembarking of the fruit in Europe when his father was starting the exportation business at Agrícola San Clemente, a job he
performed for two years, during the seasons of 1990 – 1991 and 1991 – 1992.
Eight years later, and after experimenting as an employee in the different companies with
plenty of success, his father informed him of the financial situation at the Juice Plant, and Luis son took it as a challenge and a job opportunity (1999). They had made a great
investment, but haven’t had the expected return due to a low level in sales. Luis had to take charge of the plant, and was dedicated mainly to increasing sales, which he achieved
very successfully, but maybe leaving aside the rest of the plant’s management. Once he
finished his first year at the plant he decided to honour the informal agreement he had made with his brother-in-law, Andrew, and his father, which generated a
misunderstanding, and because of this, he desisted from continuing to work together.
Five years later, when Luis son was working at Pacal and Agropacal Companies (Construction Company, Vineyard, Fruit Company and Investments) as executive director,
Caso de Estudio Familia Chadwick Fresard
20
his father invited his boss and the owner of the company, Pablo Castro, to participate in the purchase of Brotherhood, a vineyard in the USA. In this way, Luis son was involved again in
the management of the Chadwick family’s businesses; this time hired by his father’s
partner’s company. Luis son, at the Executive Direction of Brotherhood, an with the intention of embracing his boss’ vision of a family business, accepted the incorporation of
his boss’ son, but things didn’t work out as expected, and in order to be consistent with his principles and management style, decided to resign to Agropacal and Brotherhood.
Francisco Chadwick Fresard Francisco has built his professional career outside the family’s companies. Meanwhile his brother Luis left Brotherhood, he accepted the invitation from some friends to form the
investment society of Condor Trust, and at the same time accepted his father’s offer to form part of the Executive Board at Brotherhood, keeping in mind his project of a business
family and taking advantage of the experience he acquired at the vineyards where he had
worked the last years.
He also shares, along with his sister Carmen, the position of Family Board Member at Jéchica Island, and a stock participation of 5% of the property.
In 2007, Luis Chadwick decided to purchase an office for Quelentaro Services, Jéchica,
Brotherhood and ByP, and offered Francisco to buy the floor where the Condor Trust
offices were located. In this way, Francisco was able to bring together his work at Brotherhood and Condor Trust at the same place. However, some time later, he became
more involved with matters regarding Jéchica with his sister, and at Quelentaro Services.
Luis father included all his sons in Brotherhood’s property, who have been involved in the
administration and Board, and think it’s a good option. He gives each 10% of his stocks in the Vineyard (45%), which is equal to 9% of his total stock. Luis acknowledges that this
decision was not completely right, because it excluded his daughters of the property, and he feels now that he owes them.
Carmen Chadwick Fresard Meanwhile, Carmen was maturing professionally as a successful Chief of Production of
Catalogs at one of the country’s most important retail companies. Her father had discovered Jéchica Island. She and her two daughters spent their whole summer vacations
at the Island, and were a part of its process of development and growth from the beginning, enjoying every stage and contributing with ideas and in some administration
tasks. Seeing that the Island needed support and cooperation in its organization and in
some paperwork, she offered her help. In addition to this, she quit her job at the retail company because of the excess load of work it meant to her. Her father named her
Manager of the Island in charge of the administration, and after working there for a year in that position, she chose to leave the operation and only participate as Family Board
Member, and an outsider was named Manager (Daniel Casado).
Caso de Estudio Familia Chadwick Fresard
21
VI. Family and Firm Life Stage
The Origins of the Family
The story of the Chadwick Fresard’s family began a Little before Luis and Carmen’s marriage in 1966.
Luis Chadwick Vergara, son of Jorge Chadwick and Rebeca Vergara, was born in Chile in
1945, and lived his childhood in Santiago. His father, who worked at Frutos del País, a company dedicated to the agricultural business, enjoyed literature, and during his spare time
read and wrote poems. He also enjoyed sharing with his family his passion for his culture. As
a kid, Luis Chadwick began to show his spirit for business by selling plums with his father, and as a grown man he exercised it by helping his mother in the managing of Apollo, her
travel agency, and dedicated some time to supporting his brothers’ enterprises. He helped Jorge with his business with avocados, counselled Jimmy in his personal endeavours and
encouraged Carlos with business ideas. During his adolescence, he entered the Navy
Academy, were he served for 15 years, developing into a Navy Officer specialized in Telecommunications. He cultivated tenacity, austerity and discipline as values from the very
beginning of his business career, and has never stopped practicing and teaching this values.
His wife Carmen’s family of origin was very close, and she was particularly close to her father, Mr. Francisco Fresard. Her father was a Swedish descendant, and a Civil Engineer
specialized in mining, who worked his whole life at Lirquén Coal Company. He loved his
family, and lived for Carmen, her sister Margarita, and her mother, Mrs. Raquel Trucco. Raquel was a woman of a very strong character, probably for being the daughter of an Italian
father and an Irish mother. Carmen inherited from her father his pacific and conciliating character, his punctuality, order, rigor, and systematic work. She lived part of her childhood
in the South of Chile and Santiago, and her adolescence at Lirquén, Concepción, where she
met Luis Chadwick, who she married after a year of engagement. She was a woman filled with talent, warm, who loved family life, and who knew how to dedicate her entire life and
energy to every activity that this business family began.
The newly weds lived at Isla Quiriquina –located in the entrance of Bahía de Concepción, 11
kilometres north of Talcahuano-. These where the times in which Carmen looked through her window and listened fascinated to Lili Marleen’s march, a time when her husband was a naval
techniques instructor. Here they lived at her parent’s house until 1967, the year of Maureen’s birth, their first daughter. From then on, she acquired the habit of waiting for her children’s
births at her parent’s house, in Lirquén, Concepción. In 1968 the twins, Luis and Francisco, were born, and later, in 1971, Carmen, the youngest daughter, was born. They were all born
in Concepción.
It was in this time of his life when Luis Chadwick retired from the Navy, and decided to move
with his family to the North of Chile, specifically to Arica. There, he entered to work at Coelsa (Componentes Electrónicos, S.A), a company of Mellafe and Salas, during the time when the
President Eduardo Frei Montalva’s government implemented policies that favoured the
development of the electronic industry in the region. He performed as Manager of the factory, leading a team of 5 women who, with their thin fingers, operated cooper wires, and
put together parts and pieces for televisions, radios and other electronic appliances.
At Arica, the young couple and their children lived at a house located in a beautiful lot in the Azapa Valley, a place where they enjoyed the permanent springs and summers, the warmth
Caso de Estudio Familia Chadwick Fresard
22
of a rich family life and close friendships. Carmen remembers her stay in the North very fondly, and as one of the family’s most prosperous times in every sense. Even though with
the arrival of the socialist government, leaded by Salvador Allende, food became scarce, she
doesn’t remember ever having to stand in line to receive rations, because a sailor she had met at Quiriquina Island remembered her fondly when he saw her in Arica, and took to her
house all the food her family needed. These were gestures of gratitude from a sailor who remembered the nice way the good treatment and lessons from Officer Luis Chadwick when
he was his instructor and Mrs. Carmen’s cheerfulness when they dedicated to her the Lili Marleen march.
Their Beginnings in Arica During these times, by the end of 1973, the factory where Luis worked was intervened by the
UP government, and the production was stopped. Unable to perform his duties at the factory, Luis was able to dedicate a lot more time to his family, something that his wife and children
remember fondly, and also to his great passion, sailing, by participating actively at the city’s
Yacht Club. This was possible mainly because Luis made a lot of money in his businesses with Hernán Bianchi, a well-known worker he met at Coelsa, and who worked in Iquique to take
advantage of the political and economic situation of those years. They dedicated themselves to the purchase and sale of foreign currency with neighbour countries, and were able to earn
several dollars, which allowed them to live for many months and commercialize food products by taking advantage of the opportunities that the open port offered in Iquique.
Coelsa S.A belonged to Mr. Milán Platovsky –a Czech-Jewish business man- who between September, 1942 and May, 1945, suffered the terrible experience of going through different
concentration camps, among them Auschwitz-Birkenau. With the arrival of Allende’s government, Platovsky left the country fearing having to suffer another holocaust in his life,
and left the factory under Luis’ care. He offered Luis the opportunity to leave with his family
to Spain, but Luis refused after consulting it with his wife Carmen, who preferred above all to be in Chile, were she could be close to her family, even though she was willing to leave if
there was no choice left. She already missed her parents who lived in Santiago at that time.
Luis, in charge of the factory, saw an opportunity in the acquisition of its machinery, and
persisted in his efforts to buy each one of them. Since he was the only one who knew the machines real value, Milán asked him to put them a price, and also gave him credit facilities
pay for them, which he did in cash, partly with the money from his businesses with Bianchi. Meanwhile he was still buying them, he advised the factory’s interventors to take care of
them because they were very expensive machines that not anybody knew how to use.
Meanwhile Milán Platovsky remained in exile with intentions of coming back, he advised Luis
to install a big House of Imports in Arica or Iquique, to sell televisions, refrigerators, washing machines and other electronic appliances, just as in DIN (a store of electronic appliances).
Luis took the idea and got a quarter block store at Arturo Prat Street, and installed Importadora Comercial Prat with much success. With the salary he received from working
with Milán, he finished paying for every one of the machines, which he saved at a warehouse
until the right time.
His Return to Santiago and his Children’s Adolescence Both Carmen and Luis were worried with the environment their children would grow up
during their teenage years, since at that time Arica’s youth had important problems with drugs. On the order hand, Santiago also offered better educational opportunities for the
children. So they both agreed to return to Santiago before their children’s adolescence.
Caso de Estudio Familia Chadwick Fresard
23
Keeping this in mind, Luis was opened to every opportunity that would allow him to
accomplish his plan to establish himself and his family in Santiago, and in 1976 Mario Wisnia
–a Jewish businessman- invited him to put an electronic appliances store in San Antonio, one the main ports in Central Chile. Luis became partners with Mario because he admired his
capacity for negotiation which allowed him to get every last Peso. Luis contributed with the capita and Mario managed the store. Luis had already started to gradually prepare his return
to the country’s capital.
A small time later, Mario and Luis opened a store called Regalhogar in Santiago, and Luis saw
that his goal was getting closer and closer. He then talked with Milán Platovski about his intentions to leave the city to establish himself in Santiago, and announced his resignation a
year in advance. His return to Santiago happened in 1979, when his daughter Maureen was entering the first years of adolescence.
Luis Chadwick spent 25 years of his life outside of Santiago: at Valparaíso, Isla Quiriquina,
Viña del Mar, Punta Arenas and his last 8 years in Arica. When he moved to Santiago he had no networks or access to credits at banks. One day, Luis found out about an auction for an
electronic company that had gone bankrupt: Boné y Parraguez, a company from IRT (Sindelen), and in spite of having little money, he still decided to attend. He sat next to
Andrés Lyon, with whom he started a friendly chat about life, and by the end of the
conversation Luis had invited him to become partners in order to buy the company’s brand and start a new business. He would contribute with the machinery and his experience in the
production area, and Andrés and his brother would contribute with the missing capital in order to acquire the company’s brand name: ByP. He had found good partners, which he still
keeps today. It was like this that in 1979, ByP initiated its operational activities at Vicuña
Mackenna Street, where they stayed for two years in the electronic appliances business. Andrés Lyon was performing as Administration Manager, and Alberto Silva as Sales Manager.
Luis maintained Regalhogar, which had come to grow as much as Comercial Prats, in Arica.
His partner Mario managed the store; meanwhile Luis dedicated himself to his new
businesses.
The kids grew, and Maureen was almost 12 years old, the twins 11, and Carmen, 8. They did live in Santiago during their adolescent years. These would be the years when Maureen
would meet Andrew Wallace, her future husband, thanks to a profound friendship she would establish with his sister, Pamela.
Diversification and Integration The Construction Company In 1982, in the mist of an economic crisis, Luis was making great efforts and worked hard at ByP. With his partners, he strongly controlled costs and reinvested all their earnings. In this
way, they were able to grow without acquiring any bank debts. During those years, Luis and
his partners found the opportunity to buy an apartment building still under construction. Its construction company had gone bankrupt, so it remained unfinished. They bought it, and
after completing the construction, they were able to sell the whole building; the business had been a success, and they saw a good business opportunity in construction. ByP was entering
a new enterprise.
Caso de Estudio Familia Chadwick Fresard
24
With the help of architect Carlos Elton, Juan and Andrés Lyon and Luis purchased unfinished buildings at auctions, completed the constructions, sold them, and reinvested the earnings in
new lands to build in. During the first years, the construction company’s earnings were
conservative. In order to stay cautious during times of crisis, they decided to build only one building a year to prevent risks and assure the company’s profitability. The way of operating
allowed them to build a solid base to face the national crisis. The construction company grew, and it built houses and buildings in the city’s best neighbourhoods: La Dehesa, Vitacura and
Las Condes. In 1986, during the construction boom, Luis invited his son Luis to work at ByP, meanwhile he was still preparing for his admission test for university. During that year, Luis
worked part time at the purchase department.
This wasn’t his sons’ first experience in the business world. Even from their school years,
their father encouraged them to work during the summers. “¿What are they going to do during the summer?”, he would ask Luis and Francisco when vacations arrived. And he got
them jobs. One time, his father got him a job at a Packing Plant in Buin, in order to built in
him a love sense for work. Once, he sent he sent his sons to work at ByP, to work in the factory’s warehouses. Luis was always interested in making his sons participate in his
businesses, considering the importance of involving people he trusted, and on various occasions he invited his sons to work with him when they were studying at university, and
once they had graduated. Francisco restrained himself from participating in the beginning, waiting for the right time.
Agrícola San Clemente During these times of crisis, in 1984, Luis received a farm located on Chile’s VII region, as
part of a debt. Instead of selling it in order to get the money, Luis decided to develop an agricultural business oriented towards the production of apples. In order to obtain more
profitability from this payment, Luis established a society, and invited his partners from ByP,
the Lyon brothers, and Francisco Prat. Growth was very slow in the beginning, even though some investments were made with the acquisition of a new farm in the same area, but during
1987, the countryside meant only expenses. But these were compensated with the excellent dividends that the construction business reported during those years when the industry was
at its peak. In 1989, and in search for more profitability in the countryside, Luis decided to
expand his line of businesses by installing Cold Storage&Packing Plant, with the purchase of some refrigerators from a cold-storage plant in San Fernando that had recently suffered a
fire. The family went to its opening. At that time, Carmen, the youngest daughter, was already 21 years old; the twins were 24, and Maureen, 25. Two years later, Luis decided to
be the only controller, and bought his partners’ participations. His farm was now called Agrícola San Clemente. That same year, on November’s third weekend, Maureen married
Andrew Wallace.
For 10 years, Luis kept parallel jobs, achieving to manage his time: the construction company
during the mornings, ByP on the afternoons, and the farm during weekends, performing as General Manager. With this rhythm, Luis had very little time to dedicate to the farm, and
needed support to start a new line of business: exportations. At that time, ASC exported, but
only through outside Export companies (David del Curto), and Luis had the intention of doing it by himself. During the season of 1990 – 1991, and while his son Luis was at university, he
asked him for help once again to start the Export Company, and he got involved in his father’s businesses in order to take charge over the supervision and control of the fruit at
Cold Storage&Packing Plant, and travelling to Europe to receive the fruit that ASC exported from Chile. During that time, in 1992, his brother Francisco graduated in Business
Caso de Estudio Familia Chadwick Fresard
25
Management at Adolfo Ibáñez University. In reward for his efforts, he was given an apartment and a trip of six months to Europe with three friends.
Working at ByP demanded a lot of time from Luis, since it was a successful business and very attractive to him. Yet, the farm needed help, he insisted on this with his son-in-law, Andrew
Wallace, who finally accepted. Andrew had worked as a commercial assistant at ANAGRA, an important fruit exportation company with capital from New Zealand, and at ALIFRUT, another
company in the agricultural industry. With a work experience of 4 years, Andrew entered the company in 1992, taking charge over the entire farm. Encouraged by the same hard working
spirit that Luis Chadwick had for creating enterprises, business relations and new businesses,
Andrew gave structure to the Export Company that was already functioning, contributing to the growth of ASC by positioning its products in markets with higher values, such as the USA,
and strengthening Europe, and then, Asia.
The idea to fund the Export Company came from the need for transparency during the
process of exportation. Historically, this industry has been characterized for a non transparent handling of prices. In many occasions, very profitable productions received prices from
dealers that didn’t relate correctly to the prices with they were actually being sold at their final destinations. With Andrew Wallace’s incorporation in 1992 the Export Company became
a huge potential answer to this preoccupation, being oriented towards the positioning of its production at high value markets and aiming at the final client. Through this, a vertical
integration of the business was possible, an integration that would increase earnings through
all the production and distribution processes.
Another idea oriented towards vertical integration and taking advantage of the apples that were not being exported was the creation of a new line of business. In 1998, the Juice Plant was established. In the beginning, it was clearly a bad investment, due to an apple
juice crisis that lasted for seven years. In 1999, Andrew and Luis invited Luis son, who was resigning from a society he had started, to work at the plant to take full charge of its
management as Manager, and travelling constantly from Santiago to Talca. After a year of working in that position and having increased sales, he quitted because he wasn’t able to
reach and agreement with Andrew and his father. Even though these weren’t good years for
the juice plant, due to the crisis, because of the investment they had made they decided to continue and give the business a new twist by incorporating new fruits (for example,
cranberries) and increasing the plant’s capacity. They benefited from the fact that they counted with an excellent human team that was extremely efficient, and the improvement in
the prices of juices. All this made that these last three years, from 2005, it became a good business, increasing its levels of functioning.
The farm’s development in the beginning was hard and slow. However, circumstances improved thanks to the growth and professionalization process that Andrew began when he
arrived. Luis was able to relax thanks to his son-in-law’s management at ASC, and trusted completely in his administration. As a reward to his efforts and achievements, Luis Chadwick
gave him a percentage of the property (18%) turning him into a stockholder.
The Life Cycle of the Family and Professional Consolidation
It was a time of weddings; the kids had grown up and started to leave home to form their own families. In 1995, on the last week of March, Luis Chadwick Fresard married Francisca
Lehuedé; he had just graduated in Business Administration at Diego Portales University. One month later, on the first week of May, Carmen Chadwick married Andrés Jankovic. Carmen
had graduated in Interior Design.
Caso de Estudio Familia Chadwick Fresard
26
Maureen, who had been married some years and had no children, was a successful designer
and businesswoman. She and her lifetime friend, Pamela Wallace, had finally opened in 1990
an exclusive clothing store for women in the ages between 18 and 30, in one of the city’s most popular and prestigious malls, “El Drugstore”. The store, BAUX, was famous for its
stylish avant-garde clothing, made with fabrics and designs brought from their yearly trips to New York, where they travelled to stimulate their creativity. It was a place chosen by artists,
actresses, models and fashion magazines. However, her journey in fashion began a long time before, in 1987, with a stand at a Christmas fair where she made and sold backpacks with
fun designs, and then established herself in a room at the house where she would make and
sell clothes to new clients.
With all this travelling, in 1995 they thought of shipping from New York a container with objects for the house and home, each one chosen at an international fair. They rented the
store next to the one they had and installed BAUX Home, expanding to the home market.
During the three years that this new section operated, Carmen collaborated with her sister Maureen as a supplier of home articles and furniture, while she helped free lance in the
design of showcases. Maureen needed help, since she had opened a BAUX store in Presidente Riesco Street. With the boom of department stores in 1997, Maureen and Pamela
decided to close BAUX Home and BAUX Fashion, because the competition was too rough and the investments that they would have had to make in order to grow were too high for their
financial capacity.
Carmen, on the contrary, took advantage of this boom and entered to work, in 1999 at one
of the largest retail stores, where she performed with great success, passion and commitment for eight years, as chief of production of catalogs for the home department. But
she grew tired of the burnout this job meant for her, and so, she resigned from the company
and began to think about starting her own events producing company, but this time in the position of chief and coordination, in order to stay away from the draining operational work
of that business. She made some attempts to start her own business using this business model, but then realized it was impossible. For a while she assumed the managed of Jéchica
Island, the family’s ecologic reservation, and now she participates as Director at Jéchica and
receives help from an administrator. She also had the responsibility for some time of leading the Chadwick-Fresard Family Counsel, until she delegated this task on her brother Luis.
One year earlier, in 1998, the last wedding of Luis’ children was celebrated. Francisco married
Cristina Ramírez, while he worked in the commercial, sales and Export department at Viña Errázuriz. Five years before, and after graduating from university, he started his professional
career at different companies. He started in 1993 at CMPC, the country’s most important
paper factory, as an intern, and then as an executive for four years. He describes this stage of his career as very good and important. Later, in 1997, he entered the wine industry, in the
Export department at Viña Errázuriz, facing an important sales challenge, which amuses him the most, and enjoyed contacting people from different countries.
Due to his experience he was invited in 2000 to work first as Brand Manager, and then as Exportations Manager at Viña Gracia, a company in which he stayed for only two years,
because he had to work two weeks in Chile and dos weeks abroad. Even though it was an enriching experience and he enjoyed working there, it forced him to be away from his family,
and his daughter Elisa was one year old. Since he liked the business and saw a need that wasn’t being satisfied in the market, he decided to start his own wine selling company, called
Sovinex, which he sells after one year of initiating its activities, due to its slow growth. He is
Caso de Estudio Familia Chadwick Fresard
27
then invited by EXPLORA, a chain of hotels and high level tourism, as operations manager in order to support the operational and commercial areas, where he developed a successful
business model based on an operating tour. Due to a successful administration, he was
invited to participate in ENJOY, to be in charge of the casino’s hotels, and stayed there for a year because of differences in his perspectives and vision on the business. More than a
decade after initiating his activities, he decided to return to the independent world, and on October, 2006, along with three lawyer friends became associated in order to start an
investment society, Cóndor Trust, where they evaluated projects in which to invest. They currently work on the agricultural and real state areas, and in consulting in the acquisition of
companies. At the same time, his brother Luis resigned from Brotherhood, and so Francisco
was invited by his father to assume his functions as Executive Director.
Luis son also developed a successful professional career during those years. Already graduated from university, Luis entered to work in 1993 as executive at large companies such
as BICE Bank, staying there for two years. Shortly after getting married, he decided to leave
the country to work. The Bank, after finding out about his intentions to work abroad, gives him the exceptional opportunity to leave to London for two years to work at Rothschild Bank,
as Vice-president of the treasury and resources division, in charge of the Investment Funds for Latin American Central Banks. After his return to BICE, in 1998, he assumed as sub-
manager for the person banking that was being created at the time, and after a year he resigned, even though the bank offered him a series of opportunities in exchange of not
resigning. He started conversations with different companies abroad, looking for the
opportunity to take charge alone, and arrived to Vision Advisors, an agent in Chile from Morgan Stanley, and entered the administration of assets. But after a few months he realized
it wasn’t what he wanted and resigned. After his experience at the Juice Plant in 2002, one of the producers that exported through ASC, Pablo Castro, offered Luis to work in his
companies. He participated there for three years as Executive Director at Pacal and
Agropacal, being in charge of issues in construction, the agricultural industry, wine, fruits and investments. During those last years, Pablo Castro became partners with Luis Chadwick V.,
with the purchase of Brotherhood, and Luis son assumed the role of Executive Director at Brotherhood as well. In 2005, and due to differences with Pablo Castro regarding his son’s
roles in the company, he decides to resign, and starts independently his own wine and
seafood exportation company with the commercialization of 15 different products; Global Andes Export (Chile), Global Andes Company (Hong Kong) and Global Andes Incorporation
(New York), with partners in every office.
In 2008 the family had expanded, forming a group of 14 cousins. Isidora, Luis, Nicolás and Manuel Chadwick Lehuedé live with their parents Luis Chadwick and Francisca Lehuedé.
Sisters Elisa, Victoria and Cristina Chadwick Ramírez live with their parents Francisco
Chadwick and Cristina Ramírez. Brothers Tomás, Lucas, Martín, Maximiliano and Olivia Wallace Chadwick live in England with their parents Maureen Chadwick and Andrew Wallace.
Amanda and Valentina Jankovic Chadwick live with their mother, Carmen Chadwick, who separated from her husband in 2001.
The family leaders, Luis and Carmen, are currently giving their best efforts, time and dedication to build the bases that will allow them perpetuate family’s patrimony and loving
relations.
Caso de Estudio Familia Chadwick Fresard
28
The Life Stage of the Businesses and their Consolidation in the Market ByP: It was 1997, and the Asian crisis affected the country’s economy. The sales of
apartments and houses in construction were not as fast as before. Facing the slow in sales,
Luis had the clarity of mind to identify the end of the “boom” on time. When the country was in the mist of a crisis, Luis decided to close the construction company, just in the right
moment, after 10 years of functioning.
ASC: Andrew Wallace, as CEO at Agrícola San Clemente continued to strongly strengthen the business. In 2002, through the search of new markets, he was able to top the production
capacities of the plantations at Agrícola San Clemente. Facing this scenery, Luis Chadwick
started a process of purchasing fields due to the impossibility to increase the sales volume and thus, the company’s earnings. The fields were acquired without pre-existing plantations
in order to save in their prices. After the purchase, the fields were planted and their productions estimated for a specific number of years. This is how the production of edible
grapes was incorporated to the agricultural transactions in the portfolio that aimed to take
out their products through the Export Area of Agrícola San Clemente, mainly because of the model of trust and transparency that it uses in its operations.
Brotherhood: In 2004, Luis Chadwick purchased the North American vineyard of Brotherhood,
which had gone bankrupt, and involved his two sons, who during those years and been developing a strong know how of the wine business. Today the Vineyard is working on
increasing its wine production; in order to achieve this it purchases grapes from vineyards
nearby (thus, saving in logistic and distribution), increasing the number of cellars for the production of the wine, and the acquisition of wine from other vineyards. In addition to this,
it is focusing on tourism, by remodelling the mansion, creating a restaurant, and delegating the production of events to specialized company called “Ranita”.
Caso de Estudio Familia Chadwick Fresard
29
YEAR MILESTONES DESCRIPTION
1956 Luis Chadwick joins the Navy. During 15 years he Developer as Officer, in telecommunications specialty.
1966 Luis Chadwick and the navy career.
He marries Carmen and works in Quiriquina during a year as cabin boys instructor. Then, after a year he studies telecommunications in Viña del Mar. Lately he is transferred for 2 years to Punta Arenas
1970 Luis Chadwick enters COELSA, electric manufacture.
Once out of the Marine he is hired by Milan Platovski. During one year he learns about electric machinery and is transferred to Arica as manager of the company, leading 5 other managers.
1971 Luis Chadwick y Hernán Bianchi make business.
With the socialist govern of Allende, the manufacture was intervened, being Luis free of his functions that allows him to make money in different ways. Milán migrates and leaves the machinery to be cared by Luis.
1973 Luis Chadwick starts up an importer of electronic articles COMERCIAL PRAT.
With the military government Milán decides to come back and starts up de Importer. Luis buys one by one the machinery of the manufacture. One year before leaving Arica, to start up a store of electronic articles in Santiago he notices Milán of his decision.
1976 Luis Chadwick with Mario Wisnia starts up REGALHOGAR.
Luis associates with a Jew, Mario Wisnia, and starts up a store of electronic articles in San Antonio, then they will open it in Santiago. Mario works administrating the business and Luis contributes with capital.
1979 Luis Chadwick associates with Andrés and Juan Lyon and acquires BYP.
In Santiago, he participates in the auction of Sindelen (ByP) where he meets Andrés Lyon and his brother Juan and invites them to join and purchase the company. Luis contributes with the machinery for the manufacture and with his know how in the business and the Lyon’s with the capital.
1982 ByP opens CONSTRUCTORA ByP a subsidiary in building industry.
ByP buys a building in bankrupt. They finished the building work, sold it and created CONSTRUCTORA ByP.
1984 Luis Chadwick funds AGRÍCOLA SAN CLEMENTE (ASC) society.
Luis receives a field located in the VII Region, as a way of paying a debt. To make it profitable they create a society with his partners in ByP and a new one, Francisco Prat.
1986 Luis Chadwick Fresard (son) Works in CONSTRUCTORA BYP.
Luis junior finishes school and works in the building company in acquisitions. Meanwhile he prepares for the PAA, test to enter University.
1989 PACKING/FRIGORÍFICO is established. Luis buys refrigerators belonging to a burnt cold storage and starts up the Cold Storage & Packing Plant.
1990 Luis controls ASC. Luis decides to be the only owner of the agrícola and purchase his partners part.
1991 ASC establishes The EXPORT COMPANY. Luis Chadwick son gets in charge.
Luis begins to export by his own and asks his son Luis for help. While he is studying in the University he gets in charge of the supervision and quality control of the fruit in the Packing Plant and travels to Europe to receive the packed fruit from Chile.
1992 Andrew Wallace joins ASC as CEO. Andrew strengthens the Export Company and with this vertical integration reaches and important increase of utilities. As a regard, Luis gives him a percentage of ASC (12%).
1992 Luis Chadwick Fresard enters BICE Bank. He works for 5 years, two of them in London in the Rotschild Bank. He resigns in 1997 searching for new horizons.
1993 Francisco Chadwick enters CMPC. First he works as student and lately is hired when he finishes his studies in the University. He works for 4 years there.
1997 CONSTRUCTORA BYP is closed Because of the Asian Crisis, Luis identifies the boom’s final and decides to close.
1997 Francisco Chadwick enters Viña Errázuriz.
He works in the Exportation Area for 2 years in the European market.
1998 The JUICE PLANT is established. Thinking in taking advantage of the small apples that weren’t exported he establishes this plant.
1999 Luis Chadwick Fresard CEO in Juice Plant.
After working for Vision Advisors, for 4 months, Luis is invited by his father an brother-in-law to get in charge of the Juice Plant with high investments and low returns. He worked for 2 years.
2000 Francisco Chadwick enters Viña Gracia manager in the Exportation Area.
This was an interesting but hard work as he had to travel for 2 weeks leaving his family alone every month. He works for 2 years and resigns.
2000 Luis Chadwick purchases Jéchica Island. In February 1997, Luis discovers Jéchica Island and begins the
Caso de Estudio Familia Chadwick Fresard
30
deal to purchase it finally in 2000, in society with 3 partners and his son Francisco.
2000 Professionalization of the EXPORT Company and ASC.
Andrew leads this professionalization process in ASC and opens to new markets, begins to export in a more professional way, hires new staff, divides ASC in different business units.
2001 Luis Chadwick Fresard enters Agropacal. Luis son is invited by Pablo Castro, one of The Export Company’s clients to work with him in Viña Casa Patronales and the Building Company both business unit of Agropacal. He works until 2004.
2002 Francisco Chadwick establishes Sovinex. With his father’s contribution, Francisco begins a business of stacks of wine machinery, without the expected results.
2003 Francisco Chadwick enters EXPLORA. Because of his experience in Sovinex, he enters in the hotels industry as manager in the commercial and operational area where he creates a tour operator and remains for 2 years.
2003 Luis establishes SAVIA, a subsidiary of ByP.
Luis joins with Spanish and China partners to establish SAVIA an Energy saving lamps manufacture, in Suzhou, China.
2004 Luis Chadwick acquires BROTHERHOOD WINERY.
Luis invites Pablo Castro to purchase this North American winery in bankrupt through Sovinex (sold by his son Francisco). Luis son, gets involved in the management of this business as owner and Pablo Castro’s employee, until 2005, because of some problems with this partner.
2005 Francisco Chadwick enters ENJOY as Sales Manager.
Francisco Works during 1 year in the hotel industry. He resigns in 2007.
2005 Organisational Development for ASC. ASC hires a consultancy to analyze the new structures and proposals to strengthen the company to FACE the growth challenge defined for the next years.
2006 Corporate Governance for ASC. ASC hires a consultancy to build and strengthen the Board’s work and implement a Corporate Governance System.
2006 Luis Chadwick Fresard establishes GLOBAL ANDES EXPORT.
Luis son decides to Star up his own entrepreneurship: exportation of stacks of wine and seafood, with offices in Shanghai and North America.
2006 Francisco Chadwick establishes Cóndor Trust.
Some good friends invite him to develop investment projects and he accepts as a way of getting independence and establishing his own entrepreneurship.
2006 Francisco Chadwick joins Brotherhood. As Luis had resigned in December 2005 Francisco does the same in ENJOY assuming as Executive Board Member in Brotherhood.
2007 Andrew Wallace resigns ASC. He establishes a consultancy and an Import Office in London.
Tired of working in ASC and with the deep desire to undertake new courses of actions he Starts up a consultancy with a friend, and travel to London where he establishes a Fruit Import Office.
Caso de Estudio Familia Chadwick Fresard
31
1993 - CMPC
1997 - VIÑA ERRÁZURIZ
19
81
-1
99
01
99
1 -
20
00
20
01
-2
01
0
2000 - VIÑA GRACIA
2002 - SOVINEX
2003 - EXPLORA
2005 - ENJOY
2006 - CONDOR TRUST
1992 - A. WALLACE IN ASC
FRANCISCO
2006 - BROTHERHOOD
EMPLOYED IN THE FAMILY BUSINESS
EMPLOYED IN AN EXTERNAL COMPANY
PERSONAL ENTREPRENEURSHIP
1986 - BYP CONSTRUCTION
1991 - ASC EXPORT COMPANY
1999 – JUICE PLANT
2001 - VIÑAS PATRONALES
2006 - GLOBAL ANDES EXPORT
LUIS
1992 - BANCO BICE
1998 - VISION ADVISORS
OTHERS
MAUREEN CARMEN
1987 - BAUX FASHION & HOME
1997 - BAUX IS CLOSED
2004 - PAULA PRÁCTICA MAGAZINE2004 – SOVINEX IS SOLD
1999 - ALMACENES PARIS
1995 - BAUX HOME
1995 - FREE LANCE
2007 - JÉCHICA
2006 – SETTLED IN LONDON.
19
70
–C
OE
LS
A
19
71
–G
ES
TIO
NE
S F
INA
NC
IER
AS
19
73
–C
OM
ER
CIA
L P
RA
T
19
76
–R
EG
ALH
OG
AR
19
79
–B
YP
ELE
CT
RÓ
NIC
A
19
82
–B
YP
CO
NS
TR
UC
TO
RA
19
84
–A
GR
ÍC
OLA
SA
N C
LE
ME
NT
E
19
89
–P
AC
KIN
G F
RIG
OR
ÍFIC
O
19
98
–P
LA
NT
A D
E J
UG
O
1970 - 1980 1981 - 1990 1991 - 2000 2001 - 2010
20
04
–B
RO
TH
ER
HO
OD
19
92
–A
. WA
LLA
CE
A A
SC
19
91
–E
XO
RT
AD
OR
A
20
00
–IS
LA
JE
CH
ICA
20
03
–S
AV
IA
Caso de Estudio Familia Chadwick Fresard
32
VII. Culture
At the time of the arrival of the first Spanish conquerors, during the first half of the XVI
century, the area that today is called Chile was inhabited by several indigenous communities. After the Chilean Independence, during the XIX century, Chilean culture was enriched by its
current borders, with kept within the national territory cultural expressions such as the Huasa, Aimará, Chilote, Mapuche, Rapanui and Patagonian.
Chile is a country of mixtures, product of the Spanish conquest during the XVII century, an
extremely difficult period, due to the consolidation of the Spanish Crown’s control that
imposed its own culture, traditions and Catholic religion. The XVII century is known for the birth of a more refined social, cultural and institutional life. A new social class was born, the
“criollos”, constituted by people born in Chile who were descendants of the Spaniards, and who became the main force in the independency movement that started in 1810 and was
consolidated in 1818.
In addition to this, during the XIX century and the first half of the XX century important
immigrations took place, with colons from Europe sponsored by the local government, especially from Germany, Croatia and Spain (who were escaping the Spanish Civil War). Also,
commerce in the ports encouraged the settling of the English, French and Italians. Palestinian immigrants were also very important, forming the largest Palestinian community outside the
Middle East.
Due to the above, the Chilean cultural life is dynamic and diverse, combining Western
traditions with indigenous, regional and national elements.
The Chadwick Family is reflected in this history. Mrs. Carmen is the daughter of a Swedish
father and a Chilean mother who parents arrived to Chile from Italy and Ireland, and from whom she inherited a culture based on effort and hard, rigorous and systematic work. Not
being a family ambitious for money, even though enjoying an excellent economic situation, their values are centred in education, professional development, good behaviour and a simple
life. Luis, on his part, comes from a family of English immigrants. Both founders inherited
their parents love for art, music, painting and literature.
The values that come from the traditions inherited by the founders are manifested in the Chadwick Fresard family, and thus, in the culture of its companies and businesses. Hard work
and effort, rigor and responsibility are behaviours expected in Luis, Carmen and their children, and are observed in every activity and business that they carry out. Honesty and
transparency in their relations have allowed them to have good partnerships. Simplicity and
austerity have allowed them to perform without much capital, in a gradual way, by performing the necessary work without troubles, and this has facilitated the management of
companies without debts and the growth of an important patrimony. The value of work itself, not just for money, has facilitated them to be entrepreneurs just for the love of making
business. Their love for the arts and the value that they give to education has generated a
family culture of scholarships and extracurricular activities for the founders’ grandchildren. Christian values also contribute to the above mentioned, by being put to practice in their
companies through scholarships for the children of the workers at ASC, and the promotion of professional development.
Caso de Estudio Familia Chadwick Fresard
33
VIII. Entrepreneurial Orientation
Regarding the family’s entrepreneurial capacity, it is necessary to differentiate between father
and sons. The father shows an outstanding entrepreneurial capacity, is filled with new ideas (which is his greatest asset), and is brave enough to carry them out, even though the results
may not turn out as expected, and is always open to listen to new proposals to start a new enterprise. His motivation to start new activities goes beyond money, and he is extremely
hard working and energetic.
Regarding his sons, they have their father’s entrepreneurial side. He has encouraged his
sons’ entrepreneurial capacity since they were kids, in an intuitive and informal way that derived in them developing their own individual enterprises. All of his children have had at
least one entrepreneurial experience in their life, some earlier than others, or more o less successful.
However, there is a lack of entrepreneurial capacity as a family; currently they don’t count with a common project in which to work as a group. The father has invited them at different
moments to be an active part in the administration or direction of some companies, but hasn’t promoted formally an entrepreneurial capacity as a group. Luis, Francisco and Carmen
have been involved in the family’s businesses, but individually.
The companies are usually never still; Luis Chadwick had given them the seal of always doing
something new, and being constantly improving, with or without success, with courage, motivation and effort. They are entrepreneurs in the sense that there are the new ideas to
carry out, but they lack order in their administration. Maybe it’s necessary to focus more on what already exists, before continuing with new enterprises.
a. Autonomy
The freedom to propose new and creative ideas is used buy high executives in the
organization, because it corresponds to their role and profile: it’s difficult for them not to give ideas, because it is part of their functions as good executives. However,
the ideas that would have a greater impact on the organization encounter the
founder’s “I will do as I please”. This characteristic limits executives and generates a learnt lack of hope and the habit of not proposing and instead having the internal
discourse of “why should I propose anything, if in the end, he will do whatever he pleases”. This demands a great amount of effort from executives in order for good
ideas to be valued. This doesn’t happen with small decisions.
Luis sons have never received a lot of freedom, unless they are working very
closely and have the necessary style to make them be heard, which is to ask instead of proposing with autonomy.
There is the sensation that good executives are leaving because there is a lack of a
spirit for new ideas, a lack a freedom and the treatment to executives is not so
good. Communication isn’t open, and the company’s attitude is not welcoming, instead it’s somehow repressive. There are few who achieve to be listened without
being insulted.
There is also a lack of flexibility in the organization to carry out these ideas, in the sense that the founder wants to be involved in everything, and take charge of all
Caso de Estudio Familia Chadwick Fresard
34
the important matters related to strategy and administration, and also the little ones. Many things must be consulted with the founder, which slows down the flow
and flexibility of actions.
b. Innovativeness
For now, the family has little influence on the subject, because they are just getting involved in the businesses. New ideas come form a combination between the
executives and the family, of research and conversations. The founder is the one encouraging innovation the most; however, he can also block it. A great part of this
innovation is taken from observations in other countries, not so much from
research carried out inside the company.
The organization could be very innovative and administrate new ideas in a more agile and efficient way, but it’s not so easy to promote innovation, because new
ideas or proposals must deal with the founder’s approval, either by convincing him
or by expressing ideas in a way that they don’t face too much resistance. He will listen to those he fully trusts; otherwise you can get a “no” for an answer. There is
no formal system or initiatives for the development of innovation; it’s more an intuitive process.
Luis Chadwick is innovative, in the sense that he has started enterprises that are
not related to one another; electronic, agricultural, tourism. His motivation for
innovativeness is related to how attractive ideas appear to his intuition and knowledge, and with the know how of the people involved in the process.
In the agricultural area many innovative actions have been carried out; for
example, planting in the desert, and new technologies for the planting of apples,
like covering them with a network of covering each one with a cone to control their colour. The idea now is to expand the cranberry juice offer.
c. Risk-taking
In general, the tendency is to take risks and invest, even when results are uncertain, but never in an extreme manner, and always handling a certain amount
of uncertainty. Risks tend to me measured. Luis Chadwick usually takes quick decisions in order not to waste good opportunities. When it seems necessary to
reflect and take more time, some directors are a contribution to stop him from taking a decision. If risks can be decreased and controlled, the company can move
forward, otherwise, the process it stopped.
Before, when there were fewer resources, the risk profile was more conservative,
but today there are more resources, and there is a better knowledge of the business, risks are smaller, and thus actions are less conservative. For example,
there have been investments in plantations in the desert, even though they didn’t
give one single plant.
There is a close relation between risk taking and the founder’s level of involvement in the business’ administration. If Luis Chadwick will not participate in the
administration then nothing happens: he will not take the risk to leave the
Caso de Estudio Familia Chadwick Fresard
35
business’ complete administration in other people’s hands. For example, a good opportunity in the business of glasses for windows with an executive from the MBA
at MIT was lost (the business turned out to be very successful) because Luis didn’t
have the time to get more actively involved in the business.
d. Proactiveness
The general tendency is to be a step forward the competition in terms of new
initiatives and to be the first ones in new enterprises, at least in ASC and Brotherhood. It’s not like that at ByP, which has lost enthusiasm and is less and
less involved everyday. For example: Andrew noticed that the intermediation in the
sales of the fruit was going to decline, and so they started with direct sales and in a transparent way, something completely innovative. At Brotherhood, they are
innovating with a new business concept of taking wine from Chile to be bottled in the USA.
Luis Chadwick has a sixth sense for opportunities, and most of the ideas he carries out are successful, with a style that is very intuitive. Even though he doesn’t study
numbers, it’s not just a sixth sense. When nobody went to China to open new markets, Luis was there without knowing much about their culture, but with his
sociable and trustworthy style, he was able to get in.
The organization is constantly observing the market, in order to encourage
initiatives that will be a step forward from the competition, even though they could be more proactive. The leader strengthens, but also inhibits, by not always being
attentive of ideas, and because of the need to present them to him in strategic ways to be paid attention to.
e. Competitive Aggressiveness
In general, the tendency is to beat the competition through innovation. Particularly at ASC, with the internationalization of fruit in an accelerated way with a business
model based on transparency and a direct sales logistic, with offices in Shanghai and a vertical integration in London. Another example; edible grapes are more
expensive in Chile, and production conditions and the time during which the
product is available are not very good, which has caused them to be produced in Peru, with a more profitable labour and a time frame that no other country has
(October).
At Brotherhood, they have detected a dynamic that allows challenging the competition in its capacity for bottled wine at a better price. They look for close
vineyards to buy the grape (which saves in transportation and logistic) and
invested in bottling machines (tripling production).
At ByP and Jéchica there is no such tendency. On the contrary, ByP is somehow stuck.
Caso de Estudio Familia Chadwick Fresard
36
IX. “Familiness” and resource pool
a. Leadership
The founder’s leadership has been a notorious advantage in the sense that it has encouraged his own individual enterprises, and that these have been successful.
His contribution as a leader is related to his capacity to discover opportunities and be proactive enough to take advantage of them, in the generation of innovative
ideas and encouraging businesses and making them grow. His leadership has been an outstanding advantage, because of his experience, which he has known how to
use in his enterprises, allowing him to be successful. Also, because of the authority
that he exercises in the management of companies that need a strong leader. But it can be a disadvantage in the sense that he still wants to lead projects without a
clear intention to delegate any time soon to the next generation o to develop leadership among his sons or others, being resistant to incorporate external CEO’s
at ASC.
His is personal, family and humane style, with a lot of involvement and closeness
to his workers. He promotes and models his values; effort, hard work, loyalty and commitment. This style has become a disadvantage once the company’s size has
grown (ASC), and he decides to get involved in every detail and task in the organization, without intentions to delegate. This inhibits and limits the executives’
decision taking processes, who are afraid of the leader and prefer the comfort of
maintaining the status quo, generating a large amount of frustration and lack of motivation among them. The founder, even though is aware of the disadvantages
of this style, hasn’t been able to leave it or change his patterns of behaviour.
Today, leadership is in the hands of a single person, the founder. For a while he
shared it with his son-in-law, who took charge over ASC, and was a much empowered leader, with an important name in the business; he worked for 15
years with British clients who trusted his way of working because they knew it well. Since Andrew’s departure to London, leadership has returned to be exclusive. After
his departure, which generated an important break, the family unanimously defined
Andrew Wallace as the father and founder’s successor.
A new kind of leadership could be developed by strengthening experiences, successes and failures with the next generation, and allowing the new generation
to start developing entrepreneurial capacities. Instead, the founder is limiting and stopping them. His sons’ entrepreneurial capacities have been inherited in their
genes, not through formal education or transmission. Even though the father has
been a role model, they haven’t received the proper instruction to be entrepreneurs.
He has encouraged important partners with his trustworthy, transparent and
honest style. All the ideas have been supported and leaded mainly by the founder.
His partners add value to the companies, and these have grown thanks to this combination. He hasn’t been as successful when he started enterprises all by
himself, because he needs a shared vision.
Regarding entrepreneurial abilities, this leadership hasn’t been correctly guided or taken advantage from, because rules are not clear to his sons and not very
Caso de Estudio Familia Chadwick Fresard
37
transparent either, in the sense that forms small islands with his sons in his endeavours.
If his businesses were family businesses, decisions would go through the family. However, today decisions pass almost exclusively through the founder, and
agreements are no very clear to the family. It is necessary to share information.
b. Networks
Networks have been vital in order to develop new businesses. These networks
come mainly from Luis Chadwick, from his career’s first years, when his sons were
children, Andrew Wallace still wasn’t in the picture and ASC hadn’t been professionalized. However, today, the companies’ executives and the family have
brought in new networks that have benefited the business. Executives from ASC and Brotherhood know the industry, and have many years of experience working in
it, thus they have networks that provide them ideas and opportunities for
interesting businesses. Andrew Wallace has been travelling to fairs in the business of the agricultural industry, and has made networks that can be very attractive for
the business, as well as nurturing and maintaining these networks. He has also contacted foreign clients and formed strong associations with them, forming
important networks that have opened many opportunities for him in England. Luis Chadwick’s sons, Francisco and Luis, are very sociable people who perform several
activities where they can make contacts, and today have friends who are at
important positions at different companies. If necessary, the sons’ networks can turn out to be very useful for the business. One example: Luis father provided his
son Luis with a business partner for Global Andes Export; and Luis son provided his father with a business partner for Brotherhood.
Because there’s a platform of successful business men who count with an interesting patrimony and know each other, when an interesting idea comes up the
Chadwick’s get in touch with the right business man who fits the business’ profile. Luis Chadwick’s style is very informal and close, consisting of getting together to
conversations and the exchange of ideas. He forms operational chains from an idea
and different roles are generated, then he contacts the necessary people according to what that chain is missing and builds a net. It’s extremely important to build
strong networks because of the high level of competition in the businesses they get involved, since they need operational partners with a strong know how.
Luis Chadwick is an attractive connection because he has been a successful
businessman, “a horse that runs a lot and has won many races”, so he has a very
prestigious business history. Businessmen see in him his ability to take the positive out of a business, restructure it and turn it into a better business. He counts with
the necessary financial resources to get into different businesses. This is something that has characterized his personal prestige, based on seriousness, righteousness,
commitment to his word and honesty.
c. Financial Capital
Definitely, it’s the founder who has total control over decisions and the distribution of capita, without the family knowing about them. Apparently, his decisions are
based on intuition and instinct. His son Francisco, and sometimes Carmen, who
Caso de Estudio Familia Chadwick Fresard
38
share offices at Quelentaro Services with Jéchica and Condor Trust, are the ones who have the most contact with their father’s financial moves and are more
informed, but they still know that Luis Chadwick has investments that they have
never heard of.
65% of Luis Chadwick’s patrimony is invested. 90% of these investments are in the national stock market and 10% in the international stock market. The founder is
very conservative regarding this patrimony.
d. Decision Making
All decisions are centred in Luis Chadwick, the founder, and these can be oriented to the long or shot term depending on the circumstances, the type of business, and
the amount of capital that they require. They are usually very dynamic, agile and fast, because they are mainly based on intuition. He balances his intuition with
some studies and reflections, and with the information that he gets from his
partners who know about the subject. This dynamic style for decision taking can be seen as a virtue, as long as it doesn’t waste good opportunities by taking quick
decisions, and thus being a step forward from his competitors. However, it can also be seen as a weakness when it doesn’t come with a more analytical counterpart
that can evaluate the risks; but on the other side, he could be betrayed by his own style and not listen to warnings from his partners or his close ones. Maybe, he
could be able to grow even more in his businesses if he could balance more his
efficient and dynamic intuition with a more structured analysis and planning.
e. Culture (in the organization)
His beginnings as a sailor and his personality have set a style in his companies,
leaving a characteristic seal; paternalistic and authoritative, close and humane. Luis Chadwick knows wells that nothing is achieved easily; every endeavour demands
effort, hard work and commitment. The humility and simplicity with which he faces entrepreneurial challenges has helped him, allowing him to start from the bottom
in order to make a good business and make important sacrifices and make
connections with people from different origins in order to achieve his goals.
He’s extremely responsible in what he does, and very enthusiastic and motivated, which makes him want to get involved in every task in the business; it’s hard for
him to trust others, and therefore, to delegate. This combination provokes clashes inside the organization, because he stays involved during the whole process, from
the minimal to the most complex things, and wants to stay informed and in charge
of everything. This style, which can be very positive, can turn into a problem when it starts demanding the same thing from others, “to do a little bit of everything”,
which generates confusion in the worker’s functions, and thus distracting them from the focus of action, and blocking the normal flow of their activities. In time,
the fact that he doesn’t delegate in his executives generates lack of motivation in
the team.
He possesses a highly charismatic, sociable and close style, has the talent to make himself liked and respected, dedicates time to talk to his workers and establish
close relations with his people, which motivates commitment to the founder and
Caso de Estudio Familia Chadwick Fresard
39
the company. However, this paternalistic style can turn against him when he starts to reprehend his employees when they make mistakes, and if he does it without
the right tone, he will provoke conflicts that will frustrate and unmotivated
employees.
He has printed a seal of austerity in his organizations. He has a style to make as much possible from minimum investments. When he takes care of expenses, he
takes a lot of care of money, which has brought great economic results. He accompanies this with dedication and perseverance.
One of his more important beliefs says that “closeness generates commitment and trust among people”, and honesty is what generates trust. Transparency, honesty
and righteousness have been taught at the organization regarding fair prices, and he has built a prestigious and trustworthy reputation regarding the charging of
debts, opening new possibilities and opportunities for business.
The beliefs that accompany his business practices are related to the slogan
“nothing is easily achieved” and that its necessary to work hard in order to move forward in projects, being necessary to “do a little of everything and be involved in
everything”. This generates some disorganization and confusion in the organization’s roles; sometimes this belief demands others to make important
sacrifices with nothing in return.
f. Relationships
Family relations are good; there are friendship and love among the siblings, as well
as very solid and harmonious relations. The father has the intention and genuine
interest of involving his sons in the business, and keeps with them a relationship similar to the ones he has at his organizations; authoritative and close. In the case
of Francisco, the relationship with his father is an advantage to the family’s businesses in the sense that there is synergy between various opinions and
business models. They usually fit with the direction they give to the companies,
and there is usually coherence and agreement among them. The father’s style is proactive, practical and pragmatic, accompanied by a positive spirit to face
difficulties and falls to makes him raise and go on. He is also an excellent example of tenacity and perseverance for his sons and daughters. In front of good ideas, his
sons and daughters will always find his father’s support, except on those occasions when for lack of time and dedication he won’t pay attention to their good ideas and
reject them without giving them a chance. The times when Luis has worked with
his father have been a positive experience that has brought large benefits for the business; work as a team is a positive thing when tasks are clear. It hasn’t like that
with Carmen, who has declared that working with her father has been hard because of his tendency to give negative feedback in an inappropriate way and
little positive feedback.
Relations in this family are good, even though not lacking difficulties. They have
the honest intention to face conflicts and talk about them to reach agreements; since they don’t always achieve this, causing friction, sometimes they tend to avoid
conflicts with the honest intention of not damaging family relations. Because of this, not everything is talked openly. There is a disposition in the mother and her
Caso de Estudio Familia Chadwick Fresard
40
sons and daughters to talk and clear problems, and to acknowledge weaknesses and manage them.
g. Governance
In 2005, this family started to professionalize ASC, for which a corporative board
was created. This practice has expanded to other companies in the family: Brotherhood and Jéchica. Through a project of directive accompaniment requested
to a consulting firm by ASC, they have also applied these practices in other companies. Also, this family has been building during the last year a Family
Protocol, for which they constituted a Family Counsel, and during the exercise of
this Protocol, they have thought about of the design of a “Family Office” that will fulfil all the family’s requirements and needs. The Family Counsel’s functions are
currently on hold, and thus, also the Protocol. However, there are some issues being discussed and many resolved, such as the succession of the founder, among
others.
It can also be observed that there are Boards in all the companies were Luis
Chadwick participates. Luis Chadwick is President of and has at least one of his sons or daughters in all of the three constituted Boards.
THE CHADWICK FRESARD’S BUSINESS PORTFOLIO GOVERNANCE
THE CHADWICK FRESARD’S BUSINESS PORTFOLIO GOVERNANCE
JÉCHICA
CHAIRLuis Chadwick
BOARD MEMBERSFelipe Cruz
Tomás SánchezFrancisco ChadwickCarmen Chadwick
Cristóbal Pascal
CEODaniel Casado
JÉCHICA
CHAIRLuis Chadwick
BOARD MEMBERSFelipe Cruz
Tomás SánchezFrancisco ChadwickCarmen Chadwick
Cristóbal Pascal
CEODaniel Casado
CORPORATE ASC
CHAIRLuis Chadwick
BOARD MEMBERSAndrew Wallace
Francisco ChadwickArturo Miquel
Alejandro ValdésGuillermo Agüero
CEOJohn Skinner
CORPORATE ASC
CHAIRLuis Chadwick
BOARD MEMBERSAndrew Wallace
Francisco ChadwickArturo Miquel
Alejandro ValdésGuillermo Agüero
CEOJohn Skinner
BROTHERHOOD
CHAIRLuis Chadwick
BOARD MEMBERSPablo Castro
Francisco ChadwickCesar Baeza
Juan Pablo Castro
CEOHernán Donoso
BROTHERHOOD
CHAIRLuis Chadwick
BOARD MEMBERSPablo Castro
Francisco ChadwickCesar Baeza
Juan Pablo Castro
CEOHernán Donoso
ByP
CHAIRLuis Chadwick
BOARD MEMBERSJuan Lyon
Andrés LyonAlberto Silva
Andrés Errázuriz
CEOManuel Tamés
ByP
CHAIRLuis Chadwick
BOARD MEMBERSJuan Lyon
Andrés LyonAlberto Silva
Andrés Errázuriz
CEOManuel Tamés
Agrícola San Clemente, the family’s most important company, has decided to separate its activities into several business areas with an independent
management.
According to the diagram of the Corporative Government system of these
companies, Luis Chadwick V. is the President of the Corporate Board at Agrícola San Clemente, at the Executive Board at Agrícola, of one of the societies associated
to the Agrícola (Limarí Cold Storage) and of the Executive Board at Juice Plant/Cold Storage&Packing Plant. His son-in-law, Andrew Wallace, is the Executive President
Caso de Estudio Familia Chadwick Fresard
41
at the Export Company. Also, he has incorporated his son Francisco Chadwick in the Board of one of the societies associated to the Agrícola: Cranberries Austral.
EXECUTIVE
BOARDCHAIR
ANDREW
WALLACE
EXECUTIVE
BOARDCHAIR
ANDREW
WALLACE
BOARD OF DIRECTORS A.S.C. CORPORATION
CHAIRLUIS CHADWICK VERGARA
BOARD OF DIRECTORS A.S.C. CORPORATION
CHAIRLUIS CHADWICK VERGARA
EXECUTIVE
BOARDCHAIR
LUIS CHADWICK V.
EXECUTIVE
BOARDCHAIR
LUIS CHADWICK V.
RELATED
SOCIETIES1.FRUTÍCOLA ANGOL. (JS)
2.FRIGORÍFICO LIMARÍ.
(LUS CHADWICK V.)3.AGRICOLA ROMA. (JS)
4.CRANBERRIES AUSTRAL.
(FRANCISCO
CHADWICK)
RELATED
SOCIETIES1.FRUTÍCOLA ANGOL. (JS)
2.FRIGORÍFICO LIMARÍ.
(LUS CHADWICK V.)3.AGRICOLA ROMA. (JS)
4.CRANBERRIES AUSTRAL.
(FRANCISCO
CHADWICK)
EXPORT COMPANY
CEO
FELIPE HUGHES
EXPORT COMPANY
CEO
FELIPE HUGHES
MANAGER
NORTH ZONE
EDGARDO ZÚÑIGA
MANAGER
NORTH ZONE
EDGARDO ZÚÑIGA
MANAGER
SOUTH ZONE
FELIPE VENEZIAN
MANAGER
SOUTH ZONE
FELIPE VENEZIAN
JUICE PLANT
COLD STORAGE &
PACKING PLANT
CEO
PEDRO PULGAR
JUICE PLANT
COLD STORAGE &
PACKING PLANT
CEO
PEDRO PULGAR
EXECUTIVE
BOARDCHAIR
LUIS CHADWICK V.
EXECUTIVE
BOARDCHAIR
LUIS CHADWICK V.
CORPORATE
SERVICES
FINANCES,
TECHNOLOGY
AND MANAGING
CONTROL.GUILLERMO ARIAS
CORPORATE
SERVICES
FINANCES,
TECHNOLOGY
AND MANAGING
CONTROL.GUILLERMO ARIAS
MANAGER
PRODUCTGERMÁN NIEDMAN
MANAGER
PRODUCTGERMÁN NIEDMAN
MANAGER
COMMERCIALALEJANDRO RIVAS
MANAGER
COMMERCIALALEJANDRO RIVAS
MANAGER
SERVICESMALINI GONZÁLEZ
MANAGER
SERVICESMALINI GONZÁLEZ
AGRÍCOLA EXPORT COMPANY JUICE PLANT & PACKING
The following diagram is a proposal formed through the work done during the Family Counsel’s meetings during the constitution of the Protocol. All family
directors are effective to this day. Of all the proposed functions for the Family
Office, the one currently functioning are the wellbeing committee leaded by the mother, Mrs. Carmen Fresard, in cooperation with the staff from the Human
Resources Department at ASC.
SECURE INVESTMENT FUNDFIS
NEXT GEN ENTREPRENEURSHIP FUND
FEG
FAMILY, SOCIAL AND CULTURAL WELFARE
COMMITEE
FAMILY PROJECTS• ARTS AND CULTURE.• EDUCATIONAL PROJECTS.• FAMILY HOUSES.• HEALTH PROJECTS.• OTHER PROJECTS.
BUSINESS PROJECTS• SCHOLARSHIP IN HIGHER
EDUCATION.• SCHOLARSHIP IN NEW
ZELAND.
FAMILY COUNCIL
INVESTMENT COMMITEE
FAMILY OFFICE
FAMILYVENTURE CAPITAL
VCF
FAMILY DIRECTORS
LUIS CHADWICK V.FRANCISCO CHADWICK F.
BROTHERHOOD
LUIS CHADWICK V.FRANCISCO CHADWICK F.
ASC CORPORATION
LUIS CHADWICK V.FRANCISCO Y CARMEN CH.
JÉCHICA ISLAND
Caso de Estudio Familia Chadwick Fresard
42
h. Knowledge
The unspoken instances for the transmission of knowledge and education in issues
regarding the industries in which the family is involved have been oriented to the workers at ASC. ASC offers a professional development scholarship to the workers’
children at the Agrícola, that consists of granting them a loan to pay for tickets to New Zealand and contacting them to companies in that country where they will be
able to work with a salary in jobs related to the agricultural industry. With this salary, they will be able to pay for the loan and they will also be given the
opportunity to acquire high quality professional tools and knowledge for the
industry, and to live the experience of working abroad and learning the language.
Luis’ sons had the opportunity to work at ByP and ASC during the summers when they were still in high school, performing simple tasks. Luis son had the option of
working at the acquisitions department of ByP’s Construction Company the year he
graduated from high school. This was the more formal o unspoken instruction given to them by their father. His sons’ professions and their work experiences are
compatible with the work at the family companies’ managements, especially in the wine, investment and tourism industries. The family’s new companies are related to
areas where the sons and daughters have certain experience, know how and knowledge acquired during their individual professional developments.
Caso de Estudio Familia Chadwick Fresard
43
X. Entrepreneurial Performance
Luis Chadwick V. has demonstrated through his years of experience in the business world his
remarkable entrepreneurial capacity. Also, every one of his sons and daughters has been independently successful in their respective work areas and are currently starting their own
businesses, which are unrelated to their father’s businesses, thus demonstrating their own
entrepreneurial side. There is more awareness from the father and his sons and daughters of the importance of being involved in the family’s businesses and being an entrepreneurial
family.
a. Entrepreneurial Performance
Luis Chadwick V. has known how to distinguish good business opportunities and to choose wisely the business partners that will follow him in his ideas and venture in
a complementary way. He has also had the intuition to know when to enter and leave these endeavours by recognizing their peaks and declines, and has started
businesses that have been successful and sustain themselves through time. He has
also known how to adapt his business models to the environment’s conditions, succeeding during the political and economic crisis he had to live, and also has
known how to face the competition in most of his businesses. Every business or company that he started speaks of his entrepreneurial performance, by expanding
from their initial area and entering new ones, and venturing into unknown businesses. He has also managed the expansion and vertical integration in the
agricultural industry, as well as the internationalization of markets.
Currently, some of his companies are in need of renovation (ByP), strategic
alliances (Salvia) and the possibility of new alliances (Jéchica) in order to boost them.
b. Financial Performance
The financial performance at Luis Chadwick’s companies has been good through the years. The companies have grown and sustained themselves in time and have
obtained satisfactory results for the stockholders. The companies in their totality generate sales close to US$ 80 million, and the family counts with a patrimony
close to US$ 50 million.
c. Social Performance
Luis Chadwick’s companies have been a social contribution in the sense that they
have generated jobs for 250 permanent employees and 1,000 temporary employees. Currently, the family is starting a social wellbeing committee, in order
to strengthen the education and professional development of the children of the workers at ASC.
Caso de Estudio Familia Chadwick Fresard
44
PERIOD ENTREPRENEURIAL
PERFORMANCE FINANCIAL
PERFORMANCE SOCIAL
PERFORMANCE
1976 - 1900 Opens an electronic articles store in San Antonio and lately expands to Santiago.
1982 – today
He starts up a manufacture of electronic articles (ByP) and expands to the building industry. Lately to import, distribution and sales of lighting and electric equipments and materials. Establishes a energy saving lamps manufacture in Suzhou, China.
ByP ha been sustainable since its beginnings till today, overcoming the economic crisis suffered in the country, several market changes and the close of the manufacture.
1984 – today
ASC expands and integrates vertically with the creation of the “Cold Storage& Packing Plant”, then with the Export Company and finally with the Juice Plant that begins with apple and expands lately with different fruits, among them cranberries. It expands buying more fields for new fruit plantations. It internationalizes getting associated with Andrew Wallace’s import office in London.
Increases considerable the number of employees in ASC, then it expands and professionalize the organization. The Export Company has continue growing, has open new markets, has developed a good commercial portfolio, has grown with the same number of clients, increasing 4 times the volumes with similar cost structure and the same staff. The Juice Plant intends to continue diversify to different fruit juices.
The companies have created job for more than 120 persons and 1.000 temporary workers. Has offered students and professional development scholarship to the workers’ children at the Agrícola.
2000 – today Begins in the tourism industry in the Patagonia.
2004 – today
It internationalizes in the winery industry en UU.SS. He changes the business model that allows them being competitive in the wine market.
Caso de Estudio Familia Chadwick Fresard
45
XI. Transgenerational Potential
As external observers we believe that there is Transgenerational Potential in the family, and
that the associated critical factors are the following:
Leadership: currently, there is a capable leader who has been chosen by the founder and is
approved by all the members of the family, who would facilitate the process of succession when the founder decides to retire or delegate the management of his companies. This
leader is his son-in-law, Andrew Wallace, who has the necessary competences to manage the companies and to lead the process of professionalization, counts with the unanimous
approval of the founder’s sons and daughters who validate him for his professional abilities
and capacities and consider him a member of the family who they love and respect. The family trusts completely in that he will show an outstanding performance, and will perpetuate
and strengthen the family’s companies.
Government Organs: The formation of professional government organs both in the family and
the companies is a key element that contributes to the development, effectiveness and performance of the companies. It gives space to the development and capacitating of the
second generation, so it can get involved more effectively in the family’s businesses and learn how to work together. The Family Counsel allows sharing with the family the vision of a
Business Family, transmitting the transgenerational legacy to its members, and giving space to learn about the family’s companies and businesses and to work as a team.
Entrepreneurial Capacity: every member of the family carries the entrepreneurial seal in their blood, from the mother and outstandingly the father, and each one of their sons and
daughters in different levels according to their own careers, knowledge and experience. All of the sons and daughters have began their own independent endeavours, with or without their
father’s economic or moral support, and have had some success in them. This is a great
contribution that facilitates the generation of new enterprises in the future, once they have all learnt to work as a whole and share a common family project.
However, it is also observed that the family members have different visions regarding the
subject and this is according to the stage that they are currently going through. Let’s consider the fact that this family has transgenerational potential in the sense that the founder
has become aware and liked the idea of being a Business Family, and is coming to
understand what this means. He is beginning to understand the need to develop the necessary competences to lead this complex process but still isn’t clear about how to do this,
for which he has requested help and consulting.
Mrs. Carmen Fresard, his wife, is completely clear about the need to generate the necessary
circumstances to involve the second and third generation in the family’s businesses. She has a greater awareness about the need to empower her sons and daughter and to facilitate
them this task. She is a great support and a key character that will facilitate the process for this family to strengthen transgenerationally with success.
The second generation shares this dream, and is motivated with the idea of being a Business Family. However, their visions are divided, partly in relation to believing that it’s up to the
founder to start delivering certain power to his sons and daughters in order for anybody to play a role in the family’s companies. In this way they don’t have the confidence of achieving
it, since they have put all the power on the patriarch.
Caso de Estudio Familia Chadwick Fresard
46
“I’m not sure. As long as the kids start getting involved from an early age, and the leader
starts to deliver his power gradually to the next generations.” (Maureen).
“What is going on now is fundamental, because two years ago the second generation had
wanted to sell after the founder’s death. Currently they are making a great effort for it to be transgenerational. There are motivated and interested, but there is a lack of disposition to
give on both sides. However I’m a little pessimistic regarding Luis father”. (Andrew).
“My father hasn’t shown that he wants us to be a Business Family and for this to perpetuate
in time. The plan that we had is not working. I believe that the subject is dead as a future.” (Luis Chadwick Fresard).
Caso de Estudio Familia Chadwick Fresard
47
XII. Analysis, Comments and Conclusions
Recently, the family assisted to a FBN Summit (India, 2008), renovating its enthusiasm with
their transgenerational project. The key of their transgenerational potential will be in their
capacity to successfully articulate synergy among individuals, family and business.
BUSINESS
FAMILYINDIVIDUAL
MEMBER